(Question and Answer): me variance correct UDY Beech Company produced and sold 105,000 units of its product in May. For the level o

QS 21-1 Beech Company…

me variance correct UDY Beech Company produced and sold 105,000 units of its product in May. For the level of prodastie achieved in May. the budgeted amounts were: sales, $1,300,000; variable costs, $750,000; and fised con costs, $300,000. The following actual financial results are available for May. Prepare a fiexible budget petfis mance report for May port Actual Sales (105,000 units) …-… … Variable costs Fixed costs.... $1.275.000 712.500 300,000 Based on predicted production of 24,000 units, a company anticipates $300,000 of fixed custs hodg P1 $246,000 of variable costs If the company actually produces 20.000 unitis, what ure amounts of fixed and variable costs? Brodrick Company expects to produce 20,000 units for the year ending December 31. A flexible hodg for 20,000 units of production reflects sales of $400,000, variable costs of $80,000 and fixed cnts d 5 If the company instead expects to produce and sell 26.000 units for the year, calculate the a

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me variance correct UDY Beech Company produced and sold 105,000 units of its product in May. For the level of prodastie achieved in May. the budgeted amounts were: sales, $1,300,000; variable costs, $750,000; and fised con costs, $300,000. The following actual financial results are available for May. Prepare a fiexible budget petfis mance report for May port Actual Sales (105,000 units) …-… … Variable costs Fixed costs…. $1.275.000 712.500 300,000 Based on predicted production of 24,000 units, a company anticipates $300,000 of fixed custs hodg P1 $246,000 of variable costs If the company actually produces 20.000 unitis, what ure amounts of fixed and variable costs? Brodrick Company expects to produce 20,000 units for the year ending December 31. A flexible hodg for 20,000 units of production reflects sales of $400,000, variable costs of $80,000 and fixed cnts d 5 If the company instead expects to produce and sell 26.000 units for the year, calculate the a

Expert Answer

 

BEECH COMPANY
Flexible Budget Performance Report
For Month Ended May 31
Flexible Budget Actual Results Variance Favorable/Unfavorable
Sales 1300000 1275000 25000 Unfavorable
Variable cost 750000 712500 37500 Favorable
Contribution margin 550000 562500 12500 Favorable
Fixed costs 300000 300000 0 None
Income from operations 250000 262500 12500 Favorable

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