Exercise - Preparation of a flexible budget performance report
Hall Company's fixed budget performance report for June follows. The $660,000 budgeted expenses include $450,000 variable expenses and $210,000 fixed expenses. Actual expenses include $200,000 fixed expenses.
|
Fixed Budget
|
Actual Results
|
Variances
|
|
Sales (in units)
|
9,000
|
7,900
|
|
|
Sales (in dollars)
|
$720,000
|
$647,800
|
$72,200 U
|
|
Total expenses
|
660,000
|
606,850
|
53,150 F
|
|
Income from operations
|
$60,000
|
$40,950
|
$19,050 U
|
Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately.