E23-16 Preparing a flexible budget performance
report
E23-16 Stenback Pro Company managers received the following incomplete
performance report:
STENBACK PRO
COMPANY
Flexible Budget Performance Report
For the Year Ended July 31, 2014
|
Actual
Flexible Budget Flexible Sales Static
|
|
Results
Variance
Budget
Volume
|
|
Variance
Budget
|
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Units 39,000 (a) 39,000 3,000 F (g)
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Sales Revenue $218,000 (b) $218,000 $27,000 F (h)
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Variable Expenses 84,000 (c) 81,000 10,000 U (i)
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Contribution Margin $134,000 (d) 137,000 17,000 F (j)
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Fixed Expenses 108,000 (e) 101,000 0 (k)
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Operating Income $
26,000
(f) $36,000 17,000 F (l)
|
Complete the performance report. Identify the employee group that may
deserve praise and the group that may be subject to criticism. Give your
reasoning.
TUTORIAL PREVIEW
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Stenback Pro Company
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|||||
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Income Statement Performance Report
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|||||
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Year Ended July 31, 2014
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Flexible Budget for Actual Number of Output Units
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Actual Results at Actual Prices
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Flexible Budget Variance
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Sales Volume Variance
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Static (Master) Budget
|
||
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Output units
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39,000
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0
|
39,000
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3,000 F
|
36,000
|
|
Sales revenue
|
$218,000
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$0
|
$218,000
|
$27,000 F
|
$191,000
|
File name: E23-16 Stenback Pro.xls File type: .xls PRICE: $9
