Success Systems’ second quarter 2014 fixed budget performance report for its computer furniture operations follows. The $159,690 budgeted expenses include $106,400 in variable expenses for desks and $18,290 in variable expenses for chairs, as well as $35,000 fixed expenses. The actual expenses include $36,500 fixed expenses. List fixed and variable expenses separately.
|Fixed Budget||Actual Results||Variances|
|Desk sales (in units)||140||146|
|Chair sales (in units)||59||67|
|Desk sales (in dollars)||$||189,000||$||195,640||$||6,640 F|
|Chair sales (in dollars)||$||30,090||$||35,175||$||5,085 F|
|Total expenses||$||159,690||$||168,520||$||8,830 U|
|Income from operations||$||59,400||$||62,295||$||2,895 F|
Perform a flexible budget. and calcuate actual cost $ per unit in respect to desk sales, chair sales,variable expenses.
|Actual||Flexible budget variance||Flexible budget||Sales volume variance||Static budget|
|Sales revenue Desk||195640||1460||U||197100||8100||F||189000|
|Sales revenue chair||35175||1005||F||34170||4080||F||30090|
|Total sales revenue||230815||455||U||231270||12180||F||219090|
|Less||Variable expense Desk||110960||4560||U||106400|
|Variable expense chair||20770||2480||U||18290|
|Total variable expense||132020||290||U||131730||7040||U||124690|
|Net operating income||62295||2245||U||64540||5140||F||59400|
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