Question

Xion Co. budgets a selling price of $80 per unit, variable costs of $35 per unit, and total fixed costs of $279,000 During June, the company produced and sold 11,700 units and incurred actual variable costs of $360,000 and actual fixed costs of $294,000. Actual sales for June were $975,000. Prepare a flexible budget report showing variances between budgeted and actual results. List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance) Answer is not complete. XION CO. Flexible Budget Report For Month Ended June 30 Actual Flexible Budget Variances Fav./Unf. Results Favorable $ 936,000 Sales 975,000 Variable expenses Favorable 409,500 360,000 Favorable Contribution margin Fixed expenses 294,000 Unfavorable Income from operations Favorable

Answer 1

XION CO Flexible Budget Report For the Month Ended June 30 Flexible Actual Budget Budget Variance Fav/ unf 936000 975000 39000 Favorable 409500 360000 -49500 Favorable 526500 615000 88500 Favourable 2790001 294000 15000 Unfavorable 247500 321000 73500 Favourable Sales Variable costs Contribution margin Fixed expenses Income from operations