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Performance Report Year Ended December 31, 2017 Actual Flexible-Budget Flexible Sales-Volume Static Results Variances Budget Variances...

Performance Report

Year Ended December 31, 2017

Actual

Flexible-Budget

Flexible

Sales-Volume

Static

Results

Variances

Budget

Variances

Budget

Units sold

108,000

99,000

Revenues (sales)

$702,000

$420,750

Variable costs

430,000

237,600

Contribution margin

272,000

183,150

Fixed costs

193,850

105,000

Operating income

$78,150

$78,150

The Beekman Company produces engine parts for car manufacturers. A new accountant intern at Beekman has accidentally deleted the calculations on the​ company's variance analysis calculations for the year ended December​ 31, 2017.

Requirement 1. Calculate all the required variances.​ (If your work is​ accurate, you will find that the total​ static-budget variance is​ $0.)

Begin with the flexible budget​ columns, then the sales volume variance column. Label each variance as favorable​ (F) or unfavorable​ (U). ​(For variances with a​ $0 balance, make sure to enter​ "0" in the appropriate field. If the variance is​ zero, do not select a label. Round your answers to the nearest whole​ dollar.)

Actual Results Flexible- Budget Variance Favorable / Unfavorable

Flexible

Budget

Units Sold 108,000

Revenue (Sales)

$702,000
Variable Cost 430,000
Contribution Margin 272,000
Fixed Cost 193,850
Operating Income 78,150

Solutions

Expert Solution

Performance Report- The Beekman Compant
Actual Flexible Budget Flexible Sales-Volume Static
Actual
Results Variances Budget Variances Budget
Units sold                            108,000                                      108,000 9000 F 99,000
Revenues (sales) $702,000.00 243000 F $459,000.00 38250F $420,750
(420750/99000)*108000
Variable costs $430,000.00 170800 UF $259,200.00 21600UF 237,600
(237600/99000)*108000
Contribution margin $272,000.00 72200 F $199,800.00 16650 F 183,150
Fixed costs $193,850.00 88850UF $105,000.00 Nil 105,000
Operating income $78,150.00 $16650UF $94,800.00 16650 F $78,150

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