Solution-What is net income for the master budget

What is net income for the master budget

Assignment Help Accounting Basics

Reference no: EM131790093

Problem

Daytec Company's fixed budget performance report for June follows. It's not done correctly! The Variances show the differences between the Fixed Budget (6,000 units) and the Actual Results (4,800 units). They have "mixed apples and oranges". Using the following additional information, you are to compute the CORRECT variances (between the Flexible Budget and the Actual Results).

The $440,000 budgeted expenses include $300,000 variable expenses and $140,000 fixed expenses. Actual expenses include $130,000 fixed expenses. Prepare a flexible budget performance report showing any variances between budgeted and actual results.

Daytec Company Fixed Budget Performance Report

(Variances are incorrectly calculated! This is NOT the way to do it)

	Fixed Budget	Actual Results	Variances
Sales (in units)	6,000	4,800
Sales (in dollars)	$480,000	$422,400	$57,600U
Total expenses	440,000	394,000	46,000F
Income from operations	$40,000	$28,400	$11,600U

Daytec Company Flexible Performance Report

	Master (Fixed)	Flexible		Flexible
	Budget	Budget	Actual	Budget
	_____units	_____units	units	Variances
Sales
-Var Cost
Margin
-FC
Income

• What is net income for the master budget?
• What is net income fro the flexible budget?
• What is actual net income?
• What is the total flexible budget variance?

Reference no: EM131790093

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What is net income for the master budget

Reference no: EM131790093

Reference no: EM131790093

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