Please assist. Thank you! Business Solutions\' second quarter 2012 fixed budget
ID: 2488381 • Letter: P
Question
Please assist. Thank you!
Business Solutions' second quarter 2012 fixed budget performance report for its computer furniture operations follows. The $170,670 budgeted expenses include $120,350 in variable expenses for desks and $19,320 in variable expenses for chairs, as well as $31,000 fixed expenses. The actual expenses include $32,700 fixed expenses. Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, MU" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)Explanation / Answer
Business Solutions Flexible Budget Performacnces Report For quarter ended June 30 Flexible Budget Actual result Variance Desk Sales 202,340 200830 1,510 U Chair Sales 41,580 42735 1,155 F Variable Expenses 146,890 147,350 460 U Contribution Margin 97,030 96,215 815 U Fixed Expenses 31000 32700 1,700 U Income form operation 66,030 63,515 2,515 U Explanation: Supporting computations Total budgeted desk sales $ 194,300 Total units budgeted 145 Budgeted selling price $ 1,340 per unit Flexible budget units 151 Flexible budget sales $ 202,340 Total budgeted chair sales $ 37,260 Total units budgeted 69 Budgeted selling price $ 540 per unit Flexible budget units 77 Flexible budget sales $ 41,580 Total budgeted variable costs for desks $ 120,350 Total units budgeted 145 Budgeted variable expenses per desk $ 830 Flexible budget units 151 Flexible budget variable expenses for desks $ 125,330 Total budgeted variable costs for chairs $ 19,320 Total units budgeted 69 Budgeted variable expenses per chair $ 280 Flexible budget units 77 Flexible budget variable expenses for chairs $ 21,560 Total budgeted variable expenses* $ 146,890 Total actual expenses $ 180,050 Actual fixed expenses 32,700 Actual variable expenses $ 147,350