Acc225 Fundamental Accounting Principles: Serial Problem 24 Business Solutions (Flexible Budget)

Acc225 Fundamental Accounting Principles Serial Problem 24 (SP24) Business Solutions' second quarter 2012 fixed budget performance report for its computer furniture operations follows. The $156,000 budgeted expenses include $108,000 in variable expenses for desks and $18,000 in variable expenses for chairs, as well as $30,000 fixed expenses. The actual expenses include $31,000 fixed expenses. Fixed Budget Actual Results Desk sales (in units) 144 150 Chair sales (in units) 72 80 Desk sales (in dollars) 180,000 186,000 Chair sales (in dollars) 36,000 41,200 Total expenses 156,000 163,880 Income from operations 60,000 63,320

Prepare flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately.