Question: Business Solutions' second quarter 2012 fixed budget performance report for its computer furniture operations follows. The $156,000 budgeted expenses include $108,000 in variable expenses for desks and $18,000 in variable expenses for chairs, as well as $30,000 fixed expenses. The actual expenses include $31,000 fixed expenses. Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately.

                                                 Fixed Budget               Actual Results                  Variances

Desk sales (in units). . . . . . . . . . . . . 144                             150

Chair sales (in units) . . . . . . . . . . . . 72                                 80

Desk sales (in dollars) . . . . . . . . . . . $180,000                    $186,000                       $6,000 F

Chair sales (in dollars) . . . . . . . . . . . $ 36,000                    $ 41,200                        $5,200 F

Total expenses . . . . . . . . . . . . . . . . . $156,000                 $163,880                       $7,880 U

Income from operations . . . . . . . . . $ 60,000                      $ 63,320                        $3,320 F