Question

bay Prepare a fexible budget performance report. (Hint: You will need to calculate the fiexible budget amounts for 4,000 units.) 1 2 As the company owner, which employees would you praise or criticize after you analyze this performance report? Requirement 1. Prepare a flexible budget performance report. (Hint: You will need to calculste the flexible budget amounts for 4,000 units) (Enter a 0 for any zero balances. For any s0 variances, leave the Favorable IFWnfaworable (u irout blank Enter all amounts as positive values.) X Data Table Flexi For Static Budget Actual Results Units 4,000 5,000 Budget 39.500 Sales Revenue 45,000 Act 20,000 Amounts 17,200 Variable Expenses 0 Res Per Unit Contribution Margin 22.300 25,000 Units 14,000 16,000 Fixed Expenses Sales Revenue S 8,300 9.000 Operating Income

Answer 1

Part-1:

Flexible Budget Performance Report for the Month ended June 30,2018:

		1	2 = (1)-(3)	3	4 = (3)-(5)	5
Particulars	Budget Amount per unit	Actual Results	Flexiable Budget Variance	Flexible Budget	Sales Volume Variance	Static Budget
Units	5000	4000	0	4000	-1000	5000
Sales revenue	9	39500	3500	36000	-9000	45000
Variable Expenses	4	17200	1200	16000	-4000	20000
Contribution Margin	5	22300	2300	20000	-5000	25000
Fixed Expenses	3.2	14000	0	14000	-2000	16000
Operating Income	1.8	8300	2300	6000	-3000	9000

.

Note:

1)Budget Amount per unit = Static Budget/5000 units

2)Flexible Budget = Budget Amount per unit*4000 units

.

Part-2:

As the company owner , after analyzing the above report I will appraise the employees of Operations Department and criticize the Sales Team.