Chapter

$7$

Flexible budgeting and performance evaluation Copr. Goedl

$2$

$0$

$2$

$3$

Owensville Pool Service is preparing a Flexible Budget Performance report for the month of July. Data for the planning budget and the actual results are provided below. Planning budget cost formulas Estimated units of production

$1$

$5$

$,$

$0$

$0$

$0$

Sales $

$1$

$6$

Q Wages and salaries $

$3$

$6$

$,$

$0$

$0$

$0$

Employee benefits $

$1$

$2$

$,$

$0$

$0$

$0$

Supplies $

$4$

Q Rent expense $

$5$

$,$

$0$

$0$

$0$

Utilities $

$9$

$0$

$0$

plus $

$0$

$.$

$2$

$5$

Q Misc. expenses $

$8$

$,$

$5$

$0$

$0$

plus $

$1$

$.$

$5$

$0$

Q Actual results Actual units of production

$1$

$2$

$,$

$4$

$0$

$0$

Sales $

$1$

$9$

$2$

$,$

$2$

$0$

$0$

Wages and salaries $

$3$

$6$

$,$

$0$

$0$

$0$

Employee benefits $

$1$

$2$

$,$

$4$

$0$

$0$

Supplies $

$5$

$4$

$,$

$5$

$6$

$0$

Rent expense $

$5$

$,$

$0$

$0$

$0$

Utilities $

$3$

$,$

$3$

$8$

$0$

Misc. expenses $

$2$

$6$

$,$

$8$

$0$

$0$

Calculate Net operating income for the Planning Budget AND the flexible budget