Exercise 23-6 Preparing a flexible budget report LO P1

Lewis Co. reports the following results for May. Prepare a flexible budget report showing variances between budgeted and actual results.

	Budgeted						Actual
Sales		$	1,050	per unit			$	1,678,000
Variable expenses		$	420	per unit			$	652,000
Fixed expenses (total)		$	147,500				$	137,000
Units produced and sold			1,350					1,550

List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance)

LEWIS CO.
Flexible Budget Performance Report
For Month Ended May 31
	Flexible Budget	Actual Results	Variances	Fav./Unf.