Complete the following partial flexible budget performance report, and indicate whether each variance is favorable or unfavorable. The company budgets a selling price of $80 per unit and variable costs of $35 per unit. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. )

Flexible Budget Performance Report

For Month Ended June 30 Flexible Budget (10,800 units) Actual Results (10,800 units) Variances

Sales $ ? $ ? $ 21,000 F

Variable costs ? 351,000 ? Contribution margin 486,000 ? ? Fixed costs 270,000 285,000 ? Income $ ? $ ? $ ?

The variance in sales is unfavorable because the actual sales revenue is higher than the budgeted amount. The variance in variable costs is favorable because the actual variable costs are lower than the budgeted amount. The variance in contribution margin is favorable because the actual contribution margin is higher than the budgeted amount. The variance in fixed costs is unfavorable because the actual fixed costs are higher than the budgeted amount. The variance in income is favorable because the actual income is higher than the budgeted amount.

To calculate the flexible budget for sales, we multiply the budgeted selling price per unit ($80) by the number of units budgeted (10,800): $80 x 10,800 = $864,000.

To calculate the actual results for sales, we multiply the actual selling price per unit ($80) by the number of units sold (10,800): $80 x 10,800 = $885,000.

To calculate the variance in sales, we subtract the flexible budget amount from the actual results amount: $885,000 - $864,000 = $21,000.

To calculate the flexible budget for variable costs, we multiply the budgeted variable cost per unit ($35) by the number of units budgeted (10,800): $35 x 10,800 = $378,000.

To calculate the variance in variable costs, we subtract the actual results amount from the flexible budget amount: $378,000 - $351,000 = $27,000.

To calculate the contribution margin, we subtract the variable costs from the sales: $885,000 - $351,000 = $534,000.

To calculate the variance in contribution margin, we subtract the flexible budget amount from the actual results amount: $534,000 - $486,000 = $48,000.

To calculate the variance in fixed costs, we subtract the flexible budget amount from the actual results amount:

$285,000 - $270,000 = $15,000.

To calculate the variance in income, we subtract the flexible budget amount from the actual results amount:

$249,000 - $216,000 = $33,000.

Learn more about variance in business, here https://brainly.com/question/29307912

#SPJ4