Success Systems' second quarter 2014 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.
Fixed Budget Actual Results Variances
Desk sales (in units) . . . . . . . . . . . ............. . 144....................... 150
Chair sales (in units) . . . . . . . . . . . ............... 72........................ 80
Desk sales (in dollars) . . . . . . . . ....... . . $180,000................ $186,000........... $6,000 F
Chair sales (in dollars) . . . . . . . . . . . ......$ 36,000..................$ 41,200........... $5,200 F
Total expenses . . . . . . . . . . . . . . . ....... . $156,000................ $163,880.......... $7,880 U
Income from operations . . . . . . . . .........$ 60,000................. $ 63,320........... $3,320 F