part A1

part B3

Exercise 21-2 Classifying costs as fixed or variable LO P1 JPAK manufactures and sells mountain bikes. It operates eight hours a day, five days a week. Using this information, classify each of the following costs as fixed or variable with respect to the number of bikes made. Cost Item a. Bike frames b. Screws for assembly c. Direct labor d. Taxes on property e. Bike tires f. Gas used for heating g. Office supplies h. Depreciation on tools i. Management salaries Exercise 21-5 Preparing a flexible budget performance report LO P1 Bay City Company's fixed budget performance report for July follows. The $587,000 budgeted total expenses include $400,000 variable expenses and $187,000 fixed expenses. Actual expenses include $177,000 fixed expenses. Variances Sales (in units) Sales (in dollars) Total expenses Income from operations Fixed Budget 8,000 $640,000 587,000 $ 53,000 Actual Results 6,900 $621,000 557,000 $ 64,000 $19,000 U 30,000 $11,0000 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.) BAY CITY COMPANY Flavila Rua Dormance Dann 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.) BAY CITY COMPANY Flexible Budget Performance Report For Month Ended July 31 Flexible budget Actual results Variances Fav/Unf