I think I have done the budget correctly. I have no idea. mainly stuck on everyt
ID: 2509557 • Letter: I
Question
I think I have done the budget correctly. I have no idea. mainly stuck on everything afrer the operating income on down. I did input random answer into all boxes so you could know what the question was looking for and its potential answer.
If you could straight forward answer all of the questions and then explain at the bottom that would be greatly appreciated. Thank you.
Cellular Technologies manufactures capacitors for cellular baso stations and other communications applications. The company's July 2016 flexible budget shows output levels of 7,500, 9,000, and 11,000 units. The static budget was based on expected sales of 9,000 units. (Click the ioon to view the flexible budget.) The company sold 11,000 units during July, and its actual operating income was as follows ?(click the icon to view the income statement) Read the requirements Requirement 1. Prepare a flexible budget performance report for July. (Enter a "0 for any zero balances. For any S0 variances, leave the Favorable (FyUnfavorable (U) input blank.) Flexible Budget Performance Report For the Month Ended July 31, 2016 3) (5) Sales Budget Amounts Per Unit Flexible BudgetFlexible Volume Static Variance Budget Actual Results Budget 9,000 11,000 282,0001 148,000 11,000 275,000 143,000 1 Units Sales Revenue Variable Expenses [ 50,000?| 225,000! 7.000E 5,000 U L 23( 117,000 13 Choose from any list or enter any number in the input fields and then continue to the next question. Save for Later MacBook ProExplanation / Answer
1.
2. This is the sales Volume Variance
3.
4.
a. A favourable sales revelue flexible budget variance means the sales price was higher than planned.
This can be seen from our budget , where the average actual sales price is $25.64 per unit ($282,000 / 11,000) as against the budget price of $25.00.
b. A favourable sales volume variance reveals whether profits increased due to more units being sold.
Details Budget Amount per unit Actual Results Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget Units 11000 11000 9000 Sales Revenue 25 282000 7000 F 275000 50000 F 225000 Variable costs 13 148000 5000 U 143000 26000 U 117000 Contribution Margin 12 134000 2000 F 132000 24000 F 108000 Fixed Expenses 57500 1500 U 56000 0 56000 Operating Income 76500 500 F 76000 24000 F 52000 500 F 24000 F Flexible Budget Variance Sales Volume Variance 24,500 F Static Budget Variance