Question: Daytec Company's fixed budget performance report for June follows. The $440,000 budgeted expenses include $300,000 variable expenses and $140,000 fixed expenses. Actual expenses include $130,000 fixed expenses. Prepare a flexible budget performance report showing any variances between budgeted and actual results. List fixed and variable expenses separately.
Fixed Budget Actual Results Variances
Sales (in units) . . . . . . . . . . . . . . . . . 6,000 4,800
Sales (in dollars) . . . . . . . . . . . . . . . $480,000 $422,400 $57,600 U
Total expenses . . . . . . . . . . . . . . . . 440,000 394,000 46,000 F
Income from operations . . . . . . . . . $ 40,000 $ 28,400 $11,600 U