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exercise 21-3
t st 6.000 Income from operations 195.000 Solitaire Company’s fixed budget performance report for June follows. The $315,000 bodgeted expere 21-3 of a flexible include $294,000 variable expenses and S21.000 fixed espenses. Actual expenses include s27.x0 expenses. Prepare a flexible budget performance report showing any variances between budgeted and ac tual results. List fixed and variable expenses separately Fixed Budget Actual Results Variances 8.400 0.800 Sales (in units) Sales (in dollars) Total expenses Income from operations $540000 $120,000F 378,00063000u $105,000 $162.000 $7,000F $420,000 315,000
Expert Answer
| Fixed Budget | Actual Results | Variance | ||||
| Sales(in Units) | 8400 | 10800 | ||||
| Sales(in Dollars) | 420000 | 540000 | 120000 | F | ||
| Total Expenses | 315000 | 378000 | -63000 | A | ||
| Income from Operations | 105000 | 162000 | 57000 | F | ||
| Budgeted Expenses | Actual Expenses | |||||
| Variable Expenses | 294000 | 351000 | ||||
| Fixed Expenses | 21000 | 27000 | ||||
| Total | 315000 | 378000 | ||||
| Solitarire Company | ||||||
| Monthly Manufacturing Overhead Flexible Budget | ||||||
| For the Month June | ||||||
| Particulars | Budgeted | Actual | Variance | Result | ||
| Sales | 420000 | 540000 | 120000 | Favourable | ||
| Variable OH | 294000 | 351000 | -57000 | Adverse | ||
| Total | 294000 | 351000 | -57000 | |||
| Fixed OH | 21000 | 27000 | -6000 | Adverse | ||
| Total | 21000 | 27000 | -6000 | |||
| Total Expense | 315000 | 378000 | -63000 | |||
| Net Result | 105000 | 162000 | 57000 | Favorable | ||
