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Exercise 23-6 Preparing a flexible budget report LO P1 Lewis Co. reports the following results for...

Exercise 23-6 Preparing a flexible budget report LO P1

Lewis Co. reports the following results for May. Prepare a flexible budget report showing variances between budgeted and actual results.

Budgeted Actual
Sales $ 1,050 per unit $ 1,678,000
Variable expenses $ 420 per unit $ 652,000
Fixed expenses (total) $ 147,500 $ 137,000
Units produced and sold 1,350 1,550


List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance)

LEWIS CO.
Flexible Budget Performance Report
For Month Ended May 31
Flexible Budget Actual Results Variances Fav./Unf.

Solutions

Expert Solution

Particulars Flexible budget Actual Variance Nature
Units              1,550
Sales $ 1,627,500 $         1,678,000 $                 50,500 F
Variable expenses $     651,000 $            652,000 $                  (1,000) U
Fixed expenses $     147,500 $            137,000 $                 10,500 F
$                -   $                       -   $                          -  
Net profit $     829,000 $            889,000 $               (60,000) U

ekkarill92 answered 3 years ago
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