Phone Technologies manufactures capacitors for cellular base stations and other communications applications. The company’s July 2018 flexible budget shows output levels of 7,500, 9,000, and 11,000 units . The static

Phone Technologies manufactures capacitors for cellular base stations and other communications applications. The company’s July 2018 flexible budget shows output levels of 7,500, 9,000, and 11,000 units . The static budget was based on expected sales of 9,000 units. The company sold 11,000 units during July. Its flexible budget and actual operating income was as follows:

Requirement 1. Prepare a flexible budget performance report for July (Enter a “0” for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank ) Transcribed Image Text: Data Table
Data Table
Phone Technologies
Flexible Budget
Phone Technologies
For the Month Ended July 31, 2018
Budget
Amount
Income Statement
For the Month Ended July 31, 2018
per Unit
Sales Revenue
$ 260,000
7,500
9,000
11,000
Units
148,000
2.
23 $ 172,500 $ 207,000 $ 253,000
Variable Expenses
Sales Revenue
Contribution Margin
112,000
Variable Expenses
13
97,500
117,000
143,000
55,000
75,000
90,000
110,000
Fixed Expenses
Contribution Margin
2$
57,000
54,000
54,000
54,000
Fixed Expenses
Operating Income
36,000 S
56,000
2$
21,000 $
Operating Income
Print
Done
Print
Done Transcribed Image Text: Phone Technologies
Flexible Budget Performance Report
For the Month Ended July 31, 2018
1
3
4
5
(1) – (3)
(3) – (5)
Budget
Flexible
Sales
Amounts
Actual
Budget
Flexible
Volume
Static
Per Unit
Results
Variance
Budget
Variance
Budget
Units
Sales Revenue
Variable Expenses
Contribution Margin
Fixed Expenses
Operating Income