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Jansen Corporation's data concerning the company's monthly revenues and costs appear below.
Variable Cost Formula
Fixed Cost Formula
Revenue
$15.00/unit
Costs of material
$7.25/unit
Wages and salaries
$20,000
Utilities
$0.45/unit
$1,200
Rent
$10,000
Miscellaneous
$0.90/unit
$2,000
Required:
a) Prepare the company's planning budget assuming that 10,000 units were manufactured.
b) Assume that 9,900 units were actually manufactured. Prepare the flexible budget for this level of activity.
c) Prepare a flexible budget performance report for the company using the actual income statement information shown below.
$149,200
Costs of materials
73,200
Salaries
19,500
5,800
10,000
12,000
Financial Statement Analysis and Preparation
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