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:   Supporting computations       Total fixed budget sales $ 820,000     Total fixed budget units ÷ 8,200       Budgeted selling price (per unit) $ 100     Flexible budget units × 10,600       Flexible budget sales $ 1,060,000       Total fixed budget variable expenses $ 578,100     Total units budgeted ÷ 8,200       Budgeted variable expenses (per unit) $ 70.50     Flexible budget units × 10,600       Flexible budget variable expenses $ 747,300       Total actual expenses $ 738,000     Less actual fixed expenses   48,900       Total actual variable expenses $ 689,100

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:

Variable amount per unit :

Equals total variable costs divided by the volume of 12,000 units.