Vision and Audio is a small owner-managed business that specializes in the installation of television and audio equipment for customers with high-end home theatre systems. The company has provided the following data concerning its most recent month of operations:
 

	Budgeted Fixed Component per Month			Budgeted Variable Component per Installation			Actuals for October
Revenue				$	550		$	52,250
Installer wages	$	17,200						16,900
Selling and administrative expenses		1,225			15			2,804
								(1,304	fixed)
Office expenses		5,400			3			5,416
								(5,112	fixed)
Marketing expenses		3,160						3,300
Insurance		300						300
Miscellaneous expenses		550			2			709
								(538	fixed)

 

The company uses the number of installations as its measure of activity. For example, selling and administrative expenses should be $1,225 plus $15 per job, and the actual selling and administrative expenses for October were $2,804. The company expected to do 100 installations in October, but actually did 95.

Required:
Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 100 jobs. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).

Transcribed Image Text:

my work mode : This shows what is correct or incorrect for the work you have completed so for. It does not indicate completion. Petum to question Prepare a comprehenstve performance report for October. Assume that the static budget for October was based on an activity level of 100 jobs. (Indicate the effect of eech variance by selecting "F" for favorable, "U" for unfevoreble, and "None" for no effect (Le., zero verience). Answer is not complete. Vision and Audio Comprehensive Performance Report For the Month Ended October 31 Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget Actual Jobs 95 95 100 Revenue Os s2.250 O 0O None s 52.250 O 2.750 Ou 55.000 Variable Expenses 1.500 O 304 O 75Ou 19Ou 1,425 O 285 O 75OF 15OF Selng and administrative expenses 1.500 O 300 O Office expenses Miscellaneous expenses 171O 19OF 190 O 10 OF 200 Total varable expenses 1975 75Ou 1.900 100 OF 2.000 Contribution margin 50 275 50 350 53.000 Less fred expenses 16.900 O 1304O 5.112O 3.300 O 300 OF 79OU 208 OF O 50.350 O 1225O 5.400 O 3. 160 O 300 0 550 O 00U O 17.200O 0O None C Instaler wages 1.225 O 5.400 O 3.160O Seling and administrative expenses 0O None O Office expenses Marketing expenses 140 Ou 0O None O 0O None O 0O None O Insurance 300 O 0O None O 300 O Miscellaneous erpenses 12OF 550 O Total fed expenses 27 454 381OF 60 905 OO None C 27.835 Operating income Os 22821 306 OF (110.635) $ 2650 O None 25 165 O00 000 O o00000 my work mode : This shows what is correct or incorrect for the work you have completed so for. It does not indicate completion. Petum to question Prepare a comprehenstve performance report for October. Assume that the static budget for October was based on an activity level of 100 jobs. (Indicate the effect of eech variance by selecting "F" for favorable, "U" for unfevoreble, and "None" for no effect (Le., zero verience). Answer is not complete. Vision and Audio Comprehensive Performance Report For the Month Ended October 31 Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget Actual Jobs 95 95 100 Revenue Os s2.250 O 0O None s 52.250 O 2.750 Ou 55.000 Variable Expenses 1.500 O 304 O 75Ou 19Ou 1,425 O 285 O 75OF 15OF Selng and administrative expenses 1.500 O 300 O Office expenses Miscellaneous expenses 171O 19OF 190 O 10 OF 200 Total varable expenses 1975 75Ou 1.900 100 OF 2.000 Contribution margin 50 275 50 350 53.000 Less fred expenses 16.900 O 1304O 5.112O 3.300 O 300 OF 79OU 208 OF O 50.350 O 1225O 5.400 O 3. 160 O 300 0 550 O 00U O 17.200O 0O None C Instaler wages 1.225 O 5.400 O 3.160O Seling and administrative expenses 0O None O Office expenses Marketing expenses 140 Ou 0O None O 0O None O 0O None O Insurance 300 O 0O None O 300 O Miscellaneous erpenses 12OF 550 O Total fed expenses 27 454 381OF 60 905 OO None C 27.835 Operating income Os 22821 306 OF (110.635) $ 2650 O None 25 165 O00 000 O o00000

Answer rating: 100% (QA)

Vision and Audio Flexible Budget Performance Report For the Month of October Actual Revenue a... View the full answer