B C D E F G H K 6 Static Budget Units 2,000 9 Sales Price $795 10 Variable Cost/unit $500 11 Fixed Costs $500,000 12 13 14 Actual Results 15 Units 1,500 16 Sales Revenue $1,215,000 17 Variable Costs $742,500 18 Fixed Costs $425,000 19 20 1. Prepare a flexible budget performance report. 21 a. Compute operating income based on the static budget 22 b. Compute the flexible budget based on actual units 23 c. Compute operating income based on actual results 24 d. Compute the flexible budget variances as absolute values and label them as F (favorable) or U (unfavorable) 25 e. Compute the sales volume variances as absolute values and label them as F (favorable) or U (unfavorable) 26 2. Calculate the overall budget variance for operating income, and label it as F (favorable) or U (unfavorable) variance 27 3. Explain these variances to your management team. 28 29 30 31 Instructions STUDENT WBe Careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing A1 XV fxv B C D F G K M 2 RockChuck Company manufactures mountain bikes and has provided the following information for September 2021: 3 Actual Results Static Budget Units 6 Sales Revenue 7 Variable Costs 8 Fixed Costs 9 10 11 12 Requirements Prepare a flexible budget performance report, including the heading. Use the ABS function when calculating variances, and use the drop- 13 down selections for For U when describing the variances. 14 15 16 17 18 19 Column 5 20 Column 2 Column 3 Column 4 Column 1 Col (3) - Col (5) 21 Col (1) - Col (3) Budgeted 22 Sales Volume Actual Flexible Budget PAT Instructions STUDENTPROTECTED VIEW Be careful-files from the Internet can contain viruses. X V fxv K M A B C D E G H Column 1 Column 2 Column 3 Column 4 Column 5 Col (1) - Col (3) Col (3) - Col (5) Actual Budgeted Flexible Budget Sales Volume Amounts Actual Results For U Flexible Budget For U Static Budget Amounts Variance Variance per Unit per Unit Units Sales Revenue Variable Costs Contribution Margin 28 Fixed Costs 29 Operating Income 30 31 32 2 Calculate the overall budget variance for operating income, and label it as a F (favorable) or U (unfavorable) variance. 33 Flexible budget variance 34 Sales volume variance 35 36 Static Budget Variance for Operating Income (1) - (5) 37 Amount: 38 For U 39 40 41 3 Explain these variances to your management team. Instructions STUDENT Ready a XB C D E F G 38 For U 39 40 41 3 Explain these variances to your management team. 42 43 44 45 53 54 55 56 57 Instructions STUDENT Ready W a