Question

Business Solutions's second-quarter 2018 fixed budget performance report for its computer furniture operations follows. The $176,950 budgeted expenses include $120,350 in variable expenses for desks and $19,600 in variable expenses for chairs, as well as $37,000 fixed expenses. The actual expenses include $38,200 fixed expenses. List fixed and variable expenses separately.

Fixed Budget				Actual Results				Variances
Desk sales (in units)			145				151
Chair sales (in units)			70				78
Desk sales		$	191,400			$	197,810			$	6,410	F
Chair sales			35,000				40,170				5,170	F
Total expenses			176,950				185,670				8,720	U
Income from operations		$	49,450			$	52,310			$	2,860	F

Answer 1

Budgeted Variable Costs for Desks (a)	$120,350
Budgeted Desks Sales in Units (b)	145
Budgeted Variable cost per desk (c = a/b)	$830
Actual Variable Sales units for Desks (d)	151
Actual Variable Costs for Desks (c*d)	$125,330
Budgeted Variable Costs for Chairs (a)	$19,600
Budgeted Chairs Sales in Units (b)	70
Budgeted Variable cost per chair (c = a/b)	$280
Actual Variable Sales units for Chairs (d)	78
Actual Variable Costs for Chairs (c*d)	$21,840
Total Variable Costs ($125,330 + $21,840)	$147,170
Add: Fixed Costs	$38,200
Add: Mixed Costs ($185,670 - $147,170 - $38,200)	$300
Total Actual Costs	$185,670