Question

Top managers of Preston Industries predicted 2024 sales of 14,500 units of its product at a unit price of $7.50. Actual sales for the year were 14,300 units at $11.00 each. Variable costs were budgeted at $2.80 per unit, and actual variable costs were $2.50 per unit. Actual fixed costs of $47,000 exceeded budgeted fixed costs of $5,300. Prepare Preston's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Units Sales Revenue Variable Costs Contribution Margin Preston Industries Flexible Budget Performance Report For the Year Ended December 31, 2024 1 2 3 (1) - (3) Budget Amounts Actual Flexible Budget Per Unit Results Variance (3) - (5) Sales Volume Flexible Budget Variance Static Budget

          Top managers of Preston Industries predicted 2024 sales of 14,500 units of its product at a unit price of $7.50. Actual sales for the year were 14,300 units at $11.00 each. Variable costs were budgeted at $2.80 per unit, and actual variable costs were $2.50 per unit. Actual fixed costs of $47,000 exceeded budgeted fixed costs of $5,300.
Prepare Preston's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance?
Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.)
Units
Sales Revenue
Variable Costs
Contribution Margin
Preston Industries
Flexible Budget Performance Report
For the Year Ended December 31, 2024
1
2
3
(1) - (3)
Budget
Amounts
Actual
Flexible
Budget
Per Unit
Results
Variance
(3) - (5)
Sales
Volume
Flexible
Budget
Variance
Static
Budget

Top managers of Preston Industries predicted 2024 sales of 14,500 units of its product at a unit price of 7.50. Actual sales for the year were 14,300 units at11.00 each. Variable costs were budgeted at 2.80 per unit, and actual variable costs were2.50 per unit. Actual fixed costs of 47,000 exceeded budgeted fixed costs of5,300.
Prepare Preston's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance?
Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any 0 variances, leave the Favorable (F)/Unfavorable (U) input blank.)
Units
Sales Revenue
Variable Costs
Contribution Margin
Preston Industries
Flexible Budget Performance Report
For the Year Ended December 31, 2024
1
2
3
(1) - (3)
Budget
Amounts
Actual
Flexible
Budget
Per Unit
Results
Variance
(3) - (5)
Sales
Volume
Flexible
Budget
Variance
Static
Budget

Added by Laura F.

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