E23-16 preparing a flexible budget performance report
Cole Pro Company managers received the following incomplete performance reports:
Cole Pro Company
Flexible budget performance report
For the year ended July 31, 2016
Actual Flexible Flexible sales static
Results Budget Budget volume Budget
Variance. Variance
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Units. 39,000. (a) 39000. 8000 F. (g)
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Sales
Revenue. $214,000. (b). $214000. $19000. F (h)
Variable
Expenses 86000. (c). 80000. 8000. U. (I)
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Contribution
Margin. 128000. (d). 134000. 11000 F. (j)
Fixed
Expenses. 10800. (e). 103000. 0. (k)
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Operating
Income. $20000. (f). $31000. $11000 F (l)
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Complete the performance report. Identify their employee Group that may deserve praise and the group that may be subject to criticism. Give your reasoning.
TUTORIAL PREVIEW
Req. 1
Cole Pro Company
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Income Statement Performance Report
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Year Ended July 31, 2016
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Actual Results at Actual Prices
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Flexible Budget Variance
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Flexible Budget for Actual Number of Output Units
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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
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39,000
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8,000 F
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31,000
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File name: E23-16 Cole Pro Company.doc File type: docx PRICE: $5
