Bay City Company’s fixed budget performance report for July follows. The $587,000 budgeted expenses include $400,000 variable expenses and $187,000 fixed expenses. Actual expenses include $177,000 fixed expenses.

Bay City Company’s fixed budget performance report for July follows. The $587,000 budgeted expenses include $400,000 variable expenses and $187,000 fixed expenses. Actual expenses include $177,000 fixed expenses.

 

	Fixed Budget			Actual Results			Variances
Sales (in units)		8,000			6,900
Sales (in dollars)	$	640,000		$	607,200		$	32,800	U
Total expenses		587,000			551,000			36,000	F
Income from operations	$	53,000		$	56,200		$	3,200	U

 

Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately. (Do not round intermediate calculations.)

 

Explanation:

Supporting computations
Total fixed budget sales	$	640,000
Total units budgeted	÷	8,000
Budgeted selling price (per unit)	$	80
Flexible budget units	×	6,900
Flexible budget sales	$	552,000
Total fixed budget variable expenses	$	400,000
Total units budgeted	÷	8,000
Budgeted variable expenses (per unit)	$	50.00
Flexible budget units	×	6,900
Flexible budget variable expenses	$	345,000
Total actual expenses	$	551,000
Less actual fixed expenses		177,000
Total actual variable expenses	$	374,000