The fixed budget for 21,800 units of production shows sales of $566,800; variable costs of $65,400;...

 

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The fixed budget for 21,800 units of production shows sales of $566,800; variable costs of $65,400; and fixed costs of $141,000. The company's actual sales were 27,500 units at $670,000. Actual variable costs were $113,800 and actual fixed costs were $132,000. Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Sales Variable costs Contribution margin Fixed costs Income Flexible Budget Performance Report Flexible Budget Actual Results $ 670,000 $ 0 141,000 (141,000) $ 670,000 132,000 538,000 Variances Favorable or Unfavorable Unfavorable Unfavorable Unfavorable Favorable Unfavorable The fixed budget for 21,800 units of production shows sales of $566,800; variable costs of $65,400; and fixed costs of $141,000. The company's actual sales were 27,500 units at $670,000. Actual variable costs were $113,800 and actual fixed costs were $132,000. Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Sales Variable costs Contribution margin Fixed costs Income Flexible Budget Performance Report Flexible Budget Actual Results $ 670,000 $ 0 141,000 (141,000) $ 670,000 132,000 538,000 Variances Favorable or Unfavorable Unfavorable Unfavorable Unfavorable Favorable Unfavorable

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Lets prepare the flexible budget performance report for the given information To do this well calculate the variances and indicate whether they are fa... View the full answer