Question

# Exercise 8-3 Preparing a flexible budget performance report LO P1 Solitaire Company’s fixed budget performance report...

Exercise 8-3 Preparing a flexible budget performance report LO P1

Solitaire Company’s fixed budget performance report for June follows. The \$330,000 budgeted expenses include \$264,000 variable expenses and \$66,000 fixed expenses. Actual expenses include \$75,000 fixed expenses.

 Fixed Budget Actual Results Variances Sales (in units) 8,800 11,200 Sales (in dollars) \$ 440,000 \$ 560,000 \$ 120,000 F Total expenses 330,000 392,000 62,000 U Income from operations \$ 110,000 \$ 168,000 \$ 58,000 F

Prepare a flexible budget performance report showing any variances between budgeted and actual results. List fixed and variable expenses separately.

8-3 Required information

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.]

Hart Company made 4,600 bookshelves using 31,000 board feet of wood costing \$359,600. The company's direct materials standards for one bookshelf are 7 board feet of wood at \$11.50 per board foot.

Exercise 8-13 Computation and interpretation of materials variances LO P2

(1) Compute the direct materials price and quantity variances incurred in manufacturing these bookshelves.

AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price

 Solitaire Company Flexible Budget Performance Report For the Month Ending June Fixed Budget Activity Variance Flexible Budget Spending Variance Actual Results Sales (units) 8800 11200 11200 Sales \$ 440000 120000 F 560000 0 None 560000 Variable expenses 264000 72000 U 336000 19000 F 317000 Fixed expenses 66000 0 None 66000 9000 U 75000 Income from operations 110000 48000 F 158000 10000 F 168000

Please post independent questions separately. Thank you.

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