Success Systems? second quarter 2010 fixed budget performance report for its computer furniture operations follows. The $156,000 budgeted expenses include $108,000 in variable expenses for desks and $18,000 in variable expenses for chairs, as well as $30,000 fixed expenses. The actual expenses include $31,000 fixed expenses. Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately.

The problem needs to be solved as follows:

A. Set-up of the problem
			Fixed	Budgeted $	Actual	Actual $	Variance
			Budget	Per Unit	Results	Per Unit	In $ Total
Desk sales (units)
Chairs sales (units)
Total sales ($)
Desk sales ($)
Chair Sales ($)
Budgeted Expenses
	V-desks
	V-chairs
	Fixed exp.
Total Exp.
Gross profit per desks
Gross profit per chair
Total gross profit
Fixed Expenses
Profit
B. Analysis of Variance
TOTAL UNITS			0		0
VARIABLE COSTS				Analysis
			Budgeted	of variance	Actual
Variable costs						0
Per unit VC
Variable variance
Due to Cost					*
Due to Efficiency					**
Total variance of VC:
FIXED COSTS				Analysis
			Budgeted	of variance	Actual
Fixed costs						0
Per unit FC
FC variance
Due to Cost					*
Due to Efficiency					**
Total variance of FC:
*Cost variance= (actual quantity * actual rate) - (actual quantity *standard rate)
**Efficiency variance= (actual quantity* standard rate) - (standard quantity *standard rate)

Fixed Budget Actual Results Variances 144 72 Desk sales (in dollars) ....$180,000 $36,000 $156,000 60.000 150 80 $186.000 41,200 $163.880 63.320 Desk sales (in units) Chair sales (in units)... $6.000 F $5.200 F $7.880 U $3.320 F Chair sales in dollars).. Income from operations