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The following is a partially completed performance report for Surf's Up.

	A	B	C	D	E	F
1	Surf's Up
2	Flexible Budget Performance Report: Sales and Operating Expenses
3	For the Year Ended April 30
4		Actual	Flexible Budget Variance	Flexible Budget	Volume Variance	Master Budget
5	Sales volume (number of pools installed)	5	?	?	?	4
6	Sales revenue	$120,000	?	$126,000	?	$100,800
7	Operating expenses:
8	Variable expenses	$62,000	?	$68,000	?	$54,400
9	Fixed expenses	26,000	?	29,600	?	29,600
10	Total operating expenses	?	?	?	?	?

1. How many pools did

Surf's Up

originally think they would install in April?

The

that Surf's Up planned to sell

pools in April.

1. How many pools did

Surf's Up

originally think it would install in April?

2. How many pools did

Surf's Up

actually install in April?

3. How many pools is the flexible budget based on? Why?

4. What was the budgeted sales price per pool?

5. What was the budgeted variable cost per pool?

6. Define the flexible budget variance. What causes it?

7. Define the volume variance. What causes it?

8. Fill in the missing numbers in the performance report.

Surf's Up

Flexible Budget Performance Report: Sales and Operating Expenses

For the Year Ended April 30

Flexible Budget

Flexible

Actual

Variance

Budget

Volume Variance

Master Budget

Output units (pools installed)

5

4

Sales revenue

$120,000

$126,000

$100,800

Operating expenses:

Variable expenses

62,000

68,000

54,400

Fixed expenses

26,000

29,600

29,600

Total operating expenses

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