Question

Panco Industries has a relevant range extending to 31,000 units each month. The following performance report provides information about Panco's budget and (Click the icon to view the performance report) performance for April 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 make sure to enter in a "0". Labelcach variance as favorable (F) or unfavorable (U). Round intermediary calculations to the nearest cent) Pance Industries Flexible Budget Performance Report: Sales and Operating Expenses For the Month Ended April 30 Flexible budget Flexible Volume Actual variance Budget Variance 20,000 Master Budget Output units $ .300 Sales revenue Le Variable expenses Contribution margin 251.000 5 176.00 Less Fed expenses 19.000 Operating income Choose from any liat or enter any number in the input fields and then click Check Answer Check Answer Clear All All parts showing

Answer 1

Answer with working is given below

In flexible budget units are same as actual output hence it will be 26,000 units

Panco Industries Flexible Budget Performance Report : Sales and Operating Expenses for the month ended April 30 Flexible Flexible Volume Master Actual budget Budget Variance Budget Variance Output 26,000 26,000 5,000 31,000 Sales Revenue $251,000 $5,300 FL $245,700 $47,250 $292,950 Less: Variable expenses $176,800 $16,900 A $159,900 $30,750 $190,650 Contribution margin $74,200 $11,600 A $85,800 $16,500 $102,300 Less: Fixed Expenses | $19,000 $5,000 $24,000 $0 $24,000 Operating Income | $55,200 $6,600 A $61,800 $16,500 $78,300 Variable expense per unit Master Budget Variable Expense Total Output $190,650 31,000 $6.15 Fixed cost will be same in Flexible Budget and Master Budget