Prepare a flexible budget performance report


Business Solutions' second quarter 2012 fixed budget performance report for its computer furniture operations follows. The $156,970 budgeted expenses include $107,440 in variable expenses for desks and $16,530 in variable expenses for chairs, as well as $33,000 fixed expenses. The actual expenses include $34,200 fixed expenses.

Fixed Budget Actual Results Variances
Desk sales (in units) 136 142
Chair sales (in units) 57 65
Desk sales (in dollars) $ 175,440 $ 181,760 $ 6,320 F
Chair sales (in dollars) $ 33,060 $ 38,675 $ 5,615 F
Total expenses $ 156,970 $ 165,580 $ 8,610 U
Income from operations $ 51,530 $ 54,855 $ 3,325 F

Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately.

 

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Accounting Basics: Prepare a flexible budget performance report
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