Part 4 of 8 Points: 0.19 of 4 The Everlasting Balloon Company produces party balloons that are sold in mult-pack cases.

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Part 4 Of 8 Points 0 19 Of 4 The Everlasting Balloon Company Produces Party Balloons That Are Sold In Mult Pack Cases 1 (59.83 KiB) Viewed 41 times

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Part 4 of 8 Points: 0.19 of 4 The Everlasting Balloon Company produces party balloons that are sold in mult-pack cases. Following is the company's performance report in contribution margin format for January Click the icon to view the performance report in contribution margin format) Read the requirements The Duageteg fixed cost for the period is Requirements 4 and 5. Compute the master budget variances Be sure to indicate each vanance as favorable (F) or unfavorable (0) Management would like to determine the portion of the master budget vanance that is (a) due to volume being different than originally anticipated, and (b) due to some other unexpected cause Prepare a flexible budget performance report to address these questions, using the actual sales volume of 59,500 units and the budgeted sales volume of 53,000 units. Use the original budget assumptions for sales price variable cost per unit and fixed costs, assuming the relevant range stretches from 48,000 to 74,500 units Begin by completing the actual and master budget columns of the performance roport and then the master budget variances. Then compute the flexible budget column and the remaining variance columns (Round all amounts to the nearest whole dollar Label each variance as favorable (F) or unfavorable (U) If the variance is o make sure to enter in a "o" A variance of zero is considered favorable) The Everlasting Balloon Company Flexible Budget Performance Report For the Month Ended January 31 Flexible Master
nearest whole dollar Label each variance as favorable (F) or unfavorable (U). If the variance is 0, make sure to enter in a "0" A variance of zero is considered favorable) The Everlasting Balloon Company Flexible Budget Performance Report For the Month Ended January 31 Flexible Master Budget Flexible Volume Master Budget Actual Variance Budget Variance Budget Variance Sales volume 59500 Sales revenue 162800 Less Variable expenses 67800 Contribution margin 95000 Less Fixed expenses 72300 22700 Operating income Get more help
4. Compute the master budget variances Be sure to indicate each variance as favorable (F) or unfavorable (0) 5. Management would like to determine the portion of the master budget variance that is (a) due to volume being different than originally anticipated and (b) due to some other unexpected cause Prepare a flexible budget performance report to address these questions, using the actual sales volume of 59,500 units and the budgeted sales volume of 53,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 48,000 to 74,500 units 6. Using the flexible budget performance report you prepared for Requirement 5 answer the following questions a. How much of the master budget variance (calculated in Requirement 4) for operating income is due to volume being higher than expected? b. How much of the master budget variance for variable expenses is due to some cause other than volume? What could account for the flexible budget variance for sales revenue? What is the volume variance for fixed expenses? Why is it this amount? C. d.
ta table A B C D 1 The Everlasting Balloon Company Actual vs. Budget Performance Report 2 2 اني For the Month Ended January 31 Master Budget Variance Master Budget Actual 4 Sales volume (number of cases 5 sold) 59,500 53,000 6 Sales revenue $ 162 800$ 137 800 67 800 58 300 7 Less: Variable expenses 8 Contribution margin S S 95 000 $ 79.500 9 Less: Fixed expenses 72 300 71 000 10 Operating income S 22.700$ 8500 Print Done