Preparing a Performance Report

The following performance information is available for Leisure Exteriors, Inc. for the month of May 2016.

Required:

Complete the following performance report and identify the favorable (F) and unfavorable (U) variances. Enter variance amounts as positive numbers.

Leisure Exteriors, Inc.

Performance Report

For the Month Ended May 2016

BudgetedActual Variance

(31,000 units) (31,000 units)

Sales $4,650,000$4,800,000$__________________________________

Variable Expenses:

Direct Materials:

Lumber $620,000$633,000$__________________________________

Paint 124,000127,500__________________________________

Direct Labor:

Cutting 116,250115,200__________________________________

Assembly 74,40075,300__________________________________

Paint 46,50047,100__________________________________

Variable Factory Overhead 129,580137,655__________________________________

Variable Selling and Administrative Expenses 799,490777,400__________________________________

Total Variable Expense $1,910,220$1,913,155$__________________________________

Contribution Margin $2,739,780$2,886,845$__________________________________

Fixed expenses:

Fixed Factory Overhead 151,760154,435__________________________________

Fixed Selling and Administrative Expense 773,825765,800__________________________________

Total fixed expenses $925,585$920,235$__________________________________

Operating Income $1,814,195$1,966,610$__________________________________