Business Solutions’ second quarter 2012 fixed budget performance report for its computer furniture operations follows. The $156,000 budgeted expenses include $108,000 in variable expenses for desks and $18,000 in variable expenses for chairs, as well as $30,000 fixed expenses. The actual expenses include $31,000 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 |
|
Desk sales (in units) |
144 |
150 |
|
|
Chair sales (in units) |
72 |
80 |
|
|
Desk sales (in dollars) |
$180,000 |
$186,000 |
$6,000 F |
|
Chair sales (in dollars) |
$ 36,000 |
$ 41,200 |
$5,200 F |
|
Total expenses |
$156,000 |
$163,880 |
$7,880 U |
|
Income from operations |
$ 60,000 |
$ 63,320 |
$3,320 F |