Question

happy bubbles inc produces multicolored bubble solution

4 P10-50B (similar to) Question Hell Happy Bubbles, Inc produces multioolored bubble solution used for weddings and other avents. The company sold 70,000 bubble kits during August, and its actual operating income was as follows E(Click the icon to view the actual ingome statement) The company's flexible budget income statement for August follows e (Click the icon to view the fiexible budget income statement.) Read the requirements Requirement 1. Prépare the inoome statement performance report. Note The master budget was based on expected sales volume of 05.000 bubble kits. For accounts with a 0 balance make sure to e 0 in the appropriate column. Label each variance as favorable (F) or unfavdrable (U) A variance of zero is considered favorable) Happy Bubbles, Inc X Income Statement Performanc Data Table For the month ended Augu Actual Flexible Budget Happy Bubbles, Inc.

Answer 1

Happy Bubbles, Inc. Income Statement Performance Report For the Month Ended August 31 Flexible Budget Flexible Actual Variance Budget 70000 70000 221000 7500 F 213500 Volume Variance Master Budget 65000 198250 15250 F 500 88000 11500 14000 1000 87500 10500 14000 6250 750 1000 81250 9750 13000 Output units Sales revenue Variable expenses Cost of goods sold Sales commissions expense Utility expense Fixed expenses: Salary expense Depreciation expense Rent expense Utility expense Total expenses Operating income TTC TCC TITT CCC 2300 32300 20000 9550 5000 180350 40650 30000 20000 10000 5000 177000 36500 450 0 3350 4150 30000 20000 10000 5000 169000 29250 0 F U F 8000 7250 F