## Monday, 9 February 2015

### 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

### Solitaire Company’s fixed budget performance report for June follows. The \$615,000 budgeted expenses include \$578,100 variable expenses and \$36,900 fixed expenses. Actual expenses include \$48,900 fixed expenses.

Solitaire Company’s fixed budget performance report for June follows. The \$615,000 budgeted expenses include \$578,100 variable expenses and \$36,900 fixed expenses. Actual expenses include \$48,900 fixed expenses.

 Fixed Budget Actual Results Variances Sales (in units) 8,200 10,600 Sales (in dollars) \$ 820,000 \$ 1,060,000 \$ 240,000 F Total expenses 615,000 738,000 123,000 U Income from operations \$ 205,000 \$ 322,000 \$ 117,000 F

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

Explanation:

### Tempo Company's fixed budget for the first quarter of calendar year 2013 reveals the following.

Tempo Company's fixed budget for the first quarter of calendar year 2013 reveals the following.

 Sales (12,000 units) \$ 2,424,000 Cost of goods sold Direct materials \$ 276,600 Direct labor 515,280 Production supplies 318,360 Plant manager salary 76,600 1,186,840 Gross profit 1,237,160 Selling expenses Sales commissions 105,600 Packaging 184,080 Advertising 100,000 389,680 Administrative expenses Administrative salaries 126,600 Depreciation—office equip. 96,600 Insurance 66,600 Office rent 76,600 366,400 Income from operations \$ 481,080

Prepare flexible budgets that show variable costs per unit, fixed costs, and three different flexible budgets for sales volumes of 10,000, 12,000, and 14,000 units. (Round cost per unit to 2 decimal places.)

Explanation: