Question

Sanco Industries has a relevant range extending to 31,500 units each month. The following performance report provides information about Sanco's budget and actual performance for June. (Click the icon to view the performance report) Requirement Fill in all missing numbers in the table. Be sure to label any variances as favorable or unfavorable. (Enter the variances as positive numbers. If the variance is 0, make sure to enter in a "0". Label each variance as favorable (F) or unfavorable (U). Round intermediary calculations to the nearest cent.) For the Month Ended June 30 Flexible budget Flexible variance Budget Volume Variance Actual 29,000 Master Budget 31,500 Output units $ 5,800 F Sales revenue Less: Variable expenses 246,500 $ 214,600 195,300 Contribution margin Less: Fixed expenses 16,500 25,000 Operating income

Answer 1

H C D E F G Sanco Industries Flexible Budget Performance Report For the Month Ended June 30 Flexible Budget Flexible Actual Variance Budget Volume Variance 29,000 29,000 Master Budget 31,500 3 Output units 5 Sales revenue 6 Less: Variable expenses 7 Contribution margin I 8 Less: Fixed expenses 9 Operating income $246,500 $214,600 $31,900 $16.500 $15.400 $5,800 F ($34.800) U ($29,000)| U $8,500 F ($20,500) U | $240,700 $179,800 $60,900 $25.000 $35,900 ($20,750) U $15,500 F ($5,250) U SO NA ($5,250) U $261,450 $195,300 $66.150 $25.000 $41,150 Calculations are shown below: A F G H B C D E Sanco Industries Flexible Budget Performance Report For the Month Ended June 30 Flexible Budget Actual Variance Flexible Budget 29000 =B3 Volume Variance Master Budget 31500 3 Output units 5 Sales revenue 246500 5800 6 Less: Variable expenses 214600 =E6-B6 7 Contribution margin =B5-B6 =B7-E7 8 Less: Fixed expenses 16500 =E8-B8 9 Operating income =B7-38 =B9-E9 F =B5-C5 U =CH6/H3)*E3 U =E5-E6 F =H8 -E7-E8 =E5-H5 U =(E5/E3)*H3 =H6-E6 | F 195300 1=E7-H7 | U =H5-H6 =H8-E8 NA 25000 =E9-H9 U =H7-H8 U