Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $177,300...

 

Transcribed Image Text:

Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $177,300 budgeted expenses include $119,880 in variable expenses for desks and $21,420 in variable expenses for chairs, as well as $36,000 of fixed expenses. Actual fixed expenses total $37,200. Desk sales (in units) Chair sales (in units) Desk sales Chair sales Total expenses Actual Fixed Budget Results 148 63 $196,840 36,540 177,300 Variances 154 71 $ 203,280 42,245 186,520 $ 6,440 F 5,705 F 9,220 U Income $ 56,080 $ 59,005 $ 2,925 F Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) BUSINESS SOLUTIONS Flexible Budget Performance Report Flexible Budget Actual Results Variance Favorable/Unfavorable 204,820 $ 203,280 $ 1,540 Favorable 41,180 42,245 1,065 Favorable 148,880 149,320 440 Unfavorable For Quarter Ended June 30 Desk sales $ Chair sales Variable expenses Contribution margin Fixed expenses Income 36,000 37,200 1,200 No variance $ 61,120 $ 2,115 Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $177,300 budgeted expenses include $119,880 in variable expenses for desks and $21,420 in variable expenses for chairs, as well as $36,000 of fixed expenses. Actual fixed expenses total $37,200. Desk sales (in units) Chair sales (in units) Desk sales Chair sales Total expenses Actual Fixed Budget Results 148 63 $196,840 36,540 177,300 Variances 154 71 $ 203,280 42,245 186,520 $ 6,440 F 5,705 F 9,220 U Income $ 56,080 $ 59,005 $ 2,925 F Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) BUSINESS SOLUTIONS Flexible Budget Performance Report Flexible Budget Actual Results Variance Favorable/Unfavorable 204,820 $ 203,280 $ 1,540 Favorable 41,180 42,245 1,065 Favorable 148,880 149,320 440 Unfavorable For Quarter Ended June 30 Desk sales $ Chair sales Variable expenses Contribution margin Fixed expenses Income 36,000 37,200 1,200 No variance $ 61,120 $ 2,115