Solitaire Company’s fixed budget performance report for June follows. The $623,000 budgeted expenses include $585,620 variable expenses and $37,380 fixed expenses. Actual expenses include $49,380 fixed expenses.

Exercise 23-3 Preparation of a flexible budget performance report LO P1

Solitaire Company’s fixed budget performance report for June follows. The $623,000 budgeted expenses include $585,620 variable expenses and $37,380 fixed expenses. Actual expenses include $49,380 fixed expenses.

 

	Fixed Budget			Actual Results			Variances
Sales (in units)		8,300			10,700
Sales (in dollars)	$	830,000		$	1,070,000		$	240,000	F
Total expenses		623,000			747,600			124,600	U
Income from operations	$	207,000		$	322,400		$	115,400	F

Prepare a flexible budget performance report showing any variances between budgeted and actual results. List fixed and variable expenses separately. (Do not round intermediate calculations.) Explanation:   Supporting computations       Total fixed budget sales $ 830,000     Total fixed budget units ÷ 8,300       Budgeted selling price (per unit) $ 100     Flexible budget units × 10,700       Flexible budget sales $ 1,070,000       Total fixed budget variable expenses $ 585,620     Total units budgeted ÷ 8,300       Budgeted variable expenses (per unit) $ 70.56     Flexible budget units × 10,700       Flexible budget variable expenses $ 754,956       Total actual expenses $ 747,600     Less actual fixed expenses   49,380       Total actual variable expenses $ 698,220