Question

Business Solutions's second-quarter 2018 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. List fixed and variable expenses separately. Desk sales (in units) Chair sales (in units) Desk sales Chair sales Total expenses Income from operations Fixed Budget Actual Results Variances 144 150 72 80 $180,000 $186,000 $6,000 F 36,000 41,200 5,200 F 156,000 163,880 7,880 U $ 60,000 $ 63,320 $3,320 F Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. BUSINESS SOLUTIONS Flexible Budget Performance Report For Quarter Ended June 30 Flexible budget Actual results Variance Fav./Unf. Contribution margin

Answer 1

		Flexible Budget Performance Report
		for the Quarter ended june 30
			Flexible	Actual	Variance	Fav/Unfav
			Budget	Results
Desk Sales			187500	186,000	1,500	U
Chair sales			40000	41,200	1,200	F
Variable expense			132500	132880	380	U
Contribution margin			95000	94,320	680	U
Fixed expense			30,000	31000	1,000	U
income from operations			65,000	63,320	1,680	U
Desk sales
180,000/144
1250
flexible	1250*150=		187500
Desk variable expense
108000/144
750
Flexible budget		750*150=	112500
Chair sales
36000/72
500
flexible	500*80=		40000
chair variable expense
18000/72
250
Flexible budget		250*80=	20000
total variable expense 112500+20000=				132500