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To complete the partial flexible budget performance report, we need to fill in the correct values for Sales, Contribution Margin, and Income, as well as determine whether each variance is favorable or unfavorable. Here's the step-by-step solution:
1. Sales:
- Budgeted Sales: \[tex]$1,004,300 - Actual Sales: \$[/tex]847,000
- Sales Variance: Budgeted Sales - Actual Sales
- [tex]\( \$1,004,300 - \$847,000 = \$157,300 \)[/tex]
- Variance Status: Favorable (since the actual sales are less than the budgeted sales, there is an unused portion which can be viewed as cost-saving)
Therefore, Sales Variance is \[tex]$157,300 Favorable. 2. Variable Costs: - Budgeted Variable Costs: \$[/tex]423,500
- Actual Variable Costs: \[tex]$364,000 - Variable Cost Variance: Budgeted Variable Costs - Actual Variable Costs - \( \$[/tex]423,500 - \[tex]$364,000 = \$[/tex]59,500 \)
- Variance Status: Favorable (since actual variable costs are less than budgeted)
Therefore, Variable Costs Variance is \[tex]$59,500 Favorable. 3. Contribution Margin: - Budgeted Contribution Margin: Budgeted Sales - Budgeted Variable Costs - \( \$[/tex]1,004,300 - \[tex]$423,500 = \$[/tex]580,800 \)
- Actual Contribution Margin: Actual Sales - Actual Variable Costs
- [tex]\( \$847,000 - \$364,000 = \$483,000 \)[/tex]
- Contribution Margin Variance: Budgeted Contribution Margin - Actual Contribution Margin
- [tex]\( \$580,800 - \$483,000 = \$97,800 \)[/tex]
- Variance Status: Favorable (since budgeted contribution margin is higher than actual)
Therefore, Contribution Margin Variance is \[tex]$97,800 Favorable. 4. Fixed Costs: - Budgeted Fixed Costs: \$[/tex]283,000
- Actual Fixed Costs: \[tex]$298,000 - Fixed Costs Variance: Budgeted Fixed Costs - Actual Fixed Costs - \( \$[/tex]283,000 - \[tex]$298,000 = -\$[/tex]15,000 \)
- Variance Status: Unfavorable (since actual fixed costs are higher than budgeted)
Therefore, Fixed Costs Variance is -\[tex]$15,000 Unfavorable. 5. Income: - Budgeted Income: Budgeted Sales - Budgeted Variable Costs - Budgeted Fixed Costs - \( \$[/tex]1,004,300 - \[tex]$423,500 - \$[/tex]283,000 = \[tex]$297,800 \) - Actual Income: Actual Sales - Actual Variable Costs - Actual Fixed Costs - \( \$[/tex]847,000 - \[tex]$364,000 - \$[/tex]298,000 = \[tex]$185,000 \) - Income Variance: Budgeted Income - Actual Income - \( \$[/tex]297,800 - \[tex]$185,000 = \$[/tex]112,800 \)
- Variance Status: Favorable (since budgeted income is higher than actual)
Therefore, Income Variance is \[tex]$112,800 Favorable. By filling in these values and status, the completed partial flexible budget performance report is: \begin{tabular}{|c|c|c|c|c|c|c|} \hline & \$[/tex][tex]$\$[/tex] & \textbf{Budgeted Amount} & \textbf{Actual Amount} & \[tex]$[/tex]\$ & \textbf{Variance} & \textbf{Variance Status} \\
\hline
\textbf{Sales} & & 1,004,300 & 847,000 & & 157,300 & Favorable \\
\hline
\textbf{Variable Costs} & & 423,500 & 364,000 & & 59,500 & Favorable \\
\hline
\textbf{Contribution Margin} & & 580,800 & 483,000 & & 97,800 & Favorable \\
\hline
\textbf{Fixed Costs} & & 283,000 & 298,000 & & -15,000 & Unfavorable \\
\hline
\textbf{Income} & & 297,800 & 185,000 & & 112,800 & Favorable \\
\hline
\end{tabular}
1. Sales:
- Budgeted Sales: \[tex]$1,004,300 - Actual Sales: \$[/tex]847,000
- Sales Variance: Budgeted Sales - Actual Sales
- [tex]\( \$1,004,300 - \$847,000 = \$157,300 \)[/tex]
- Variance Status: Favorable (since the actual sales are less than the budgeted sales, there is an unused portion which can be viewed as cost-saving)
Therefore, Sales Variance is \[tex]$157,300 Favorable. 2. Variable Costs: - Budgeted Variable Costs: \$[/tex]423,500
- Actual Variable Costs: \[tex]$364,000 - Variable Cost Variance: Budgeted Variable Costs - Actual Variable Costs - \( \$[/tex]423,500 - \[tex]$364,000 = \$[/tex]59,500 \)
- Variance Status: Favorable (since actual variable costs are less than budgeted)
Therefore, Variable Costs Variance is \[tex]$59,500 Favorable. 3. Contribution Margin: - Budgeted Contribution Margin: Budgeted Sales - Budgeted Variable Costs - \( \$[/tex]1,004,300 - \[tex]$423,500 = \$[/tex]580,800 \)
- Actual Contribution Margin: Actual Sales - Actual Variable Costs
- [tex]\( \$847,000 - \$364,000 = \$483,000 \)[/tex]
- Contribution Margin Variance: Budgeted Contribution Margin - Actual Contribution Margin
- [tex]\( \$580,800 - \$483,000 = \$97,800 \)[/tex]
- Variance Status: Favorable (since budgeted contribution margin is higher than actual)
Therefore, Contribution Margin Variance is \[tex]$97,800 Favorable. 4. Fixed Costs: - Budgeted Fixed Costs: \$[/tex]283,000
- Actual Fixed Costs: \[tex]$298,000 - Fixed Costs Variance: Budgeted Fixed Costs - Actual Fixed Costs - \( \$[/tex]283,000 - \[tex]$298,000 = -\$[/tex]15,000 \)
- Variance Status: Unfavorable (since actual fixed costs are higher than budgeted)
Therefore, Fixed Costs Variance is -\[tex]$15,000 Unfavorable. 5. Income: - Budgeted Income: Budgeted Sales - Budgeted Variable Costs - Budgeted Fixed Costs - \( \$[/tex]1,004,300 - \[tex]$423,500 - \$[/tex]283,000 = \[tex]$297,800 \) - Actual Income: Actual Sales - Actual Variable Costs - Actual Fixed Costs - \( \$[/tex]847,000 - \[tex]$364,000 - \$[/tex]298,000 = \[tex]$185,000 \) - Income Variance: Budgeted Income - Actual Income - \( \$[/tex]297,800 - \[tex]$185,000 = \$[/tex]112,800 \)
- Variance Status: Favorable (since budgeted income is higher than actual)
Therefore, Income Variance is \[tex]$112,800 Favorable. By filling in these values and status, the completed partial flexible budget performance report is: \begin{tabular}{|c|c|c|c|c|c|c|} \hline & \$[/tex][tex]$\$[/tex] & \textbf{Budgeted Amount} & \textbf{Actual Amount} & \[tex]$[/tex]\$ & \textbf{Variance} & \textbf{Variance Status} \\
\hline
\textbf{Sales} & & 1,004,300 & 847,000 & & 157,300 & Favorable \\
\hline
\textbf{Variable Costs} & & 423,500 & 364,000 & & 59,500 & Favorable \\
\hline
\textbf{Contribution Margin} & & 580,800 & 483,000 & & 97,800 & Favorable \\
\hline
\textbf{Fixed Costs} & & 283,000 & 298,000 & & -15,000 & Unfavorable \\
\hline
\textbf{Income} & & 297,800 & 185,000 & & 112,800 & Favorable \\
\hline
\end{tabular}
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