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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.
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