36.6k views
2 votes
Brodrick Company expects to produce 21,700 units for the year ending December 31. A flexible budget for 21,700 units of production reflects sales of $434,000; variable costs of $65,100; and fixed costs of $142,000. Assume that actual sales for the year are $500,000 (27,400 units), actual variable costs for the year are $113,700, and actual fixed costs for the year are $134,000.Prepare a flexible budget performance report for the year.

1 Answer

3 votes

Answer:


\left[\begin{array}{cccc}&$Flexible Budget&$Actual&$Variance\\$Sales&548,000&500,000&48000U\\$Variable&-82,200&-113,700&31,500U\\$Contribution&465,800&386300&79,500U\\$Fixed Cost&-142,000&-134,000&8,000F\\$Income&323,800&252300&71,500U\\\end{array}\right]

Step-by-step explanation:

Sales Price: 434,000 / 21,700 = 20

Variable cost: 65,100 / 21,700 = 3

fixed cost: 142,000

Values at 27,400 units:

sales: 27,400 units x $20 = 548,000

variable cost: 27,400 units x $3 = 82,200

Now, we compare with the actual result and calcualte the income

User Elior Sastiel
by
8.5k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.