Sam operates his own summer lawn-mowing company using a truck and equipment dedicated solely to business operations.

Complete the flexible budget performance report below to answer the following questions:

1. What is the volume variance for total operating expenses? Favorable or unfavorable?

2. What is the flexible budget variance for total operating expenses? Favorable or unfavorable?

3. What is the comprehensive budget variance for total operating expenses? Favorable or unfavorable?

Transcribed Image Text:

1 Sam's Mowing Business Flexible Budget Performance Report for June 2 Sales volume (number of mowing jobs) 3 4 Operating expenses: 5 6 Variable operating expenses ($10 per job) $ Fixed operating expenses ($500 per month) 7 Total operating expenses 8 B Actual 125 C Flexible Budget Variance D E Flexible F Volume G H Budget Variance 125 Comprehensive Budget 100 1,370 $ 1,250 $ 1,000 475 500 500 $ 1,845 $ 1,750 $ 1,500