Exercise 21-5 Preparing a flexible budget performance report LO P1

Bay City Companys fixed budget performance report for July follows. The $440,000 budgeted total expenses include $300,000 variable expenses and $140,000 fixed expenses. Actual expenses include $130,000 fixed expenses.

	Fixed Budget			Actual Results			Variances
Sales (in units)		6,000			4,900
Sales (in dollars)	$	480,000		$	431,200		$	48,800	U
Total expenses		440,000			406,000			34,000	F
Income from operations	$	40,000		$	25,200		$	14,800	U

Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round your intermediate calculations. Round your final answers to whole dollars.)

A.	Flexible Budget	Actual Results	Variances	Fav./Unf.
Sales

Options for A: Contribution margin, fixed expenses, Income from operations, Sales, Variable expense