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Xion Co. budgets a selling price of $85 per unit, variable costs of $34 per unit, and total fixed costs of $285,000. During June, the company produced and sold 12,300 units and incurred actual variable costs of $366,000 and actual fixed costs of $300,000. Actual sales for June were $1,090,000.

Required:
Prepare a flexible budget report showing variances between budgeted and actual results. List variable and fixed expenses separately.

Respuesta :

Tundexi

Answer:

                                     XION CO.

                            Flexible budget report

                          For month ended June 30

                              Flexible     Actual     Variances     Fav/Unf

                              budget      results

Sales                    1,045,500  1,090,000    44,500      Favorable

(-) Variable cost   418,200      366,000      52200       Favorable

Contribution         627,300     724,000      96,700      Favorable

(-) Fixed cost        285,000    300,000      15,000       Unfavorable

Net income          342,300    424,000     81,700       Favorable

Workings

Sales= 12,300 units * $85 = $1,045,500

Variable cost = 12,300 units * $34 =$418,200

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