Answer:
Check the explanation
Explanation:
BAY CITY COMPANY
Flexible Budget Performance Report
For the month ended July 31
Flexible Budget Actual Results Variances Fav./Unf.
Sales $3,12,000 $3,51,000 $39,000 Fav
Variable expenses $2,18,400 $2,52,000 $33,600 Unf
Contribution margin $93,600 $99,000 $5,400 Fav
Fixed expenses $87,000 $77,000 $10,000 Fav
Income from
operations $6,600 $22,000 $15,400 Fav
Sales price per unit =$400,000 / 5,000 units =$80 per unit
Flexible Budgeted sales =3,900 units*$80 =$312,000
Variable expenses per unit =$280,000 / 5,000 units =$56 per unit
Flexible Budgeted Variable expenses =3,900 units*$56 =$218,400
