Question

Business Solutions's second-quarter 2018 fixed budget performance report for its computer furniture operations follows. The $159,800 budgeted expenses include $104,720 in variable expenses for desks and $22,080 in variable expenses for chairs, as well as $33,000 fixed expenses. The actual expenses include $34,100 fixed expenses. List fixed and variable expenses separately.
Fixed Budget Actual Results Variances
Desk sales (in units) 136 142
Chair sales (in units) 69 77
Desk sales $179,520 $186,020 $6,500 F
Chair sales 37,260 42,735 5,475 F
Total expenses 159,800 168,480 8,680 U
Income from operations $56,980 $ 60,275 $3,295 F
Prepare a flexible budget performance report that shows any variances between budgeted results and actual results.

Answer 1

Answer: Check attachment

Explanation:

Some of the information provided in the attachment are explained below:

Total unit budgeted = 136

Budgeted selling price = 1320

Total budgeted desk sales = 136 × 1320 = $179520

Flexible budget units = 142

Budgeted selling price = 1320

Flexible budget sales = $187440

Total unit budgeted = 69

Budgeted selling price = $540

Total budgeted chair sales = $37260

Flexible budget units = 77

Budgeted selling price = 540

Flexible budget sales = $41580

Total units budgeted = 136

Budgeted Variable expenses per desk = 770

Total budgeted Variable cost for desk = 136 × 770 = 104720

Flexible budget units = 142

Budgeted Variable expenses per desk = 770

Flexible budget variable expense for desks = 142 × 770 = 109340

Total units budgeted = 69

Budgeted Variable expenses per chair = 320

Total budgeted Variable cost for chair = 69 × 320 = 22080

Flexible budget units = 77

Budgeted Variable expenses per chair = 320

Flexible budget variable expense for chair =77 × 320 = 24640