Final answer:
The flexible budget report shows variances between the budgeted and actual results for Xion Co. The variances for variable and fixed expenses are calculated separately. The variable expenses had an unfavorable variance of $1,000, while the fixed expenses had a favorable variance of $15,000.
Step-by-step explanation:
The flexible budget report shows variances between the budgeted and actual results for Xion Co. Given that the company budgeted a selling price of $81 per unit, variable costs of $34 per unit, and total fixed costs of $280,000, the actual results for June were 11,800 units sold, actual variable costs of $361,000, and actual fixed costs of $295,000. The actual sales for June were $985,000. Let's calculate the variances:
Variable Expenses:
Total budgeted variable costs = Budgeted units x Budgeted variable cost per unit = 11,800 x $34 = $401,200
Total actual variable costs = Actual units x Actual variable cost per unit = 11,800 x $34 = $400,200
Variance = Total actual variable costs - Total budgeted variable costs = $400,200 - $401,200 = -$1,000 (unfavorable variance)
Fixed Expenses:
Total budgeted fixed costs = $280,000
Total actual fixed costs = $295,000
Variance = Total actual fixed costs - Total budgeted fixed costs = $295,000 - $280,000 = $15,000 (favorable variance)
Therefore, the variable expenses had an unfavorable variance of $1,000, and the fixed expenses had a favorable variance of $15,000.