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.

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.

	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

Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately.
 
Explanation:

Supporting computations
Total budgeted desk sales	$	180,000
Total units budgeted		144
Budgeted selling price	$	1,250	per unit
Flexible budget units		150
Flexible budget sales	$	187,500
Total budgeted chair sales	$	36,000
Total units budgeted		72
Budgeted selling price	$	500	per unit
Flexible budget units		80
Flexible budget sales	$	40,000
Total budgeted variable costs for desks	$	108,000
Total units budgeted		144
Budgeted variable expenses per desk	$	750
Flexible budget units		150
Flexible budget variable expenses for desks	$	112,500
Total budgeted variable costs for chairs	$	18,000
Total units budgeted		72
Budgeted variable expenses per chair	$	250
Flexible budget units		80
Flexible budget variable expenses for chairs	$	20,000
Total budgeted variable expenses*	$	132,500
Total actual expenses	$	163,880
Actual fixed expenses		31,000
Actual variable expenses	$	132,880

*($112,500 + $20,000), from calculation above

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