Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $174,390 budgeted expenses include $114,540 in variable expenses for desks and $24,850 in variable expenses for chairs, as well as $35,000 of fixed expenses. Actual fixed expenses total $36,000.
Fixed Budget Actual Results Variances
Desk sales (in units) 138 144 Chair sales (in units) 71 79 Desk sales $ 176,640 $ 182,880 $ 6,240 F
Chair sales 41,180 47,005 5,825 F
Total expenses 174,390 183,540 9,150 U
Income $ 43,430 $ 46,345 $ 2,915 F
Required:
Prepare a flexible budget performance report that shows variances between budgeted results and actual results. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)