Cimarron Company’s fixed budget performance report for July follows. The $630,000 budgeted expenses include $588,000 variable expenses and $42,000 fixed expenses. Actual expenses include $54,000 fixed expenses. Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately.
|
|
Fixed Budget |
Actual Results |
Variances |
|
Sales (in units) |
8,400 |
10,800 |
|
|
Sales (in dollars) |
$840,000 |
$1,080,000 |
$240,000 F |
|
Total expenses |
630,000 |
756,000 |
126,000 U |
|
Income from operations |
$210,000 |
$ 324,000 |
$114,000 F |