Question

Roland Company's managers received the following incomplete performance report FR (Click the icon to view the incomplete performance report.) Cd Data Table performance report Identity the employee group that may deserve praise and the group that may be subject to criticism Give your reasons. Complete the performance report (For accounts with a zero balance, make sure to enter "o" in the appropriate cell. Label each variance as favourable (F or unfavourable (U). If the variance is zero, do not select a label.) Roland Company Income Statement Performance Report Year Ended July 31 Flexible Budget for Actual Results at Flexible Budget Actual Number of Actual Prices Variance Output Units 42,000 42,000 Sales Volume Static (Master) Variance Budget 11,000 Output units 219,000 219,000$ 20,000 Sales revenue Variable expenses 9,000 U 85,000 109,000 80,000 103,000 Fixed expenses 194,000 183,000 9,000 Total expenses 25 000 36,000$ 11,000 Operating income Choose from any list or enter any number in the input fields and then continue to the next question Save for Later

Answer 1

Requirement | Income Statement Performance Report Roland Company Income Statement Performance Report For the Year Ended July 31 Actual Flexible Budget Flexible Particulars Results Variance Budget Units 42,000 42,000 Sales Volume Variance 11,000 F Static Budget 31,000 Sales Revenue $ 2,19,000 $ - None $ 2,19,000 $ 20,000 F $ 1,99,000 Variable Expenses Fixed Expenses Total Expenses $ $ $ 85,000 $ 1,09,000 $ 1,94,000 $ 5,000 6,000 11,000 $ $ $ U U 80,000 $ 1,03,000 $ 1,83,000 $ 9,000 - 9,000 None $ $ $ 71,000 1,03,000 1,74,000 Operating Income $ 25,000 $ 11,000 U $ 36,000 $ 11,000 F $ 25,000 Explanation : If the Actual Costs (i.e., variable expenses and fixed expenses) are more than Flexible Budget, then it is Unfavorable. If the Sales Volume Variance for Units is Favorable, that means the Flexible Budget Units are more than the Static Budget Units. If the Sales Revenue is Favorable, that means that the Flexible Budget is more than the Static Budget. And if the expenses have Unfavorable variance, then it means that the flexible budget costs are more than the Static Budget.