Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The...
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Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $167,460 budgeted expenses include $115,500 in variable expenses for desks and $15,960 in variable expenses for chairs, as well as $36,000 of fixed expenses. Actual fixed expenses total $37,700.
Fixed Budget
Actual Results
Variances
Desk sales (in units)
154
160
Chair sales (in units)
57
65
Desk sales
$ 197,120
$ 203,200
$ 6,080
F
Chair sales
33,630
39,325
5,695
F
Total expenses
167,460
176,320
8,860
U
Income
$ 63,290
$ 66,205
$ 2,915
F
Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)
BUSINESS SOLUTIONS
Flexible Budget Performance Report
For Quarter Ended June 30
Flexible Budget
Actual Results
Variance
Favorable/Unfavorable
Desk sales
Chair sales
Variable expenses
Contribution margin
Fixed expenses
Income
Answer & Explanation
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