Exercise 08-4 Preparing a flexible budget performance report LO P1

Xion Co. budgets a selling price of $81 per unit, variable costs of $36 per unit, and total fixed costs of $272,000. During June, the company produced and sold 11,000 units and incurred actual variable costs of $353,000 and actual fixed costs of $287,000. Actual sales for June were $905,000. Prepare a flexible budget report showing variances between budgeted and actual results. List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance)

Exercise 08-4 Preparing a flexible budget performance report LO P1 Xion Co. budgets a selling price of $81 per unit, variable costs of $36 per unit, and total fixed costs of $272,000. During June, the company produced and sold 11,000 units and incurred actual variable costs of $353,000 and actual fixed costs of $287,000. Actual sales for June were $905,000. Prepare a flexible budget report showing variances between budgeted and actual results. List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance) XION CO. Flexible Budget Report For Month Ended June 30 Flexible Budget Actual Results Variances Fav./Unf. Sales $ 946,000 $ 905,000 Favorable 396,000 353,000 Favorable Variable expenses Contribution margin Favorable Fixed expenses 287,000 Unfavorable Income from operations Favorable