Question: Cimarron Company's fixed budget performance report for July follows. The $630,000 budgeted expenses include $588,000 variable expenses and $42,000 fixed expenses. Actual expenses include $54,000 fixed expenses. Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately.
Fixed Budget Actual Results Variances
Sales (in units) . . . . . . . . . . . . . . . . . 8,400 10,800
Sales (in dollars) . . . . . . . . . . . . . . . $840,000 $1,080,000 $240,000 F
Total expenses . . . . . . . . . . . . . . . . 630,000 756,000 126,000 U
Income from operations . . . . . . $210,000 $ 324,000 $114,000 F