Question

Answer 1

Flexible Budget performance Report Revenue & Spending Variances Activity Variances Actual Results 27900 141,800 Flexible Budget 27900 128,340 Planning Budget 36100 $ 166,060 $ 13,460 F $ $ 37,720 V F Customer Served Revenue Expenses Wages & Salaries Supplies Insurance Miscellaneous expenses Total Expenses Net operating Income 5,097 7,657 69,100 $ 15,500 $ 11,500 $ 23,200 $ 119,300 $ 22,500 $ $ $ $ $ $ $ F None U F F 74,197 $ 23,157 $ 11,500 $ 18,939 $ 127,793 $ 547 $ 11,726 F $ 6,806 F $ None $ 3,362 F $ 21,894 IF $ 15,826 0 $ 4,261 8,493 21,953 85,923 29,963 11,500 22,301 149,687 16,373 Working Revenue Wages & Salaries Supplies Insurance Miscellaneous expenses Flexible Budget 27900 x 4.6 34300+27900 x 1.43) 27900 x 0.83 11500 7500+(27900 x 0.41) Planning Budget 36100 x 4.6 34300+(36100 x 1.43) 36100 x 0.83 11500 7500+(36100 x 0.41) While calculating flexible budget actual units are used in cost formula. Revenue & Spending Variance = Actual Results - Flexible Budget Variance in Expense is favorable when actual expense is less than Flexible budgeted expenses. Variance in Expense is Unfavorable when actual expense is more than Flexible budgeted expenses. Variance in Revenue is favorable when actual revenue is more than Flexible budgeted revenue. Variance in Revenue is unfavorable when actual revenue is less than Flexible budgeted revenue. Activity Variance = Flexible budget - Planning Budget Variance in Expense is favorable when Flexible budgeted expense is less than Planning budgeted expenses. Variance in Expense is Unfavorable when Flexible budgeted expense is more than Planning budgeted expenses. Variance in Revenue is favorable when Flexible budgeted revenue is more than Planning budgeted revenue. Variance in Revenue is unfavorable when Flexible budgeted revenue is less than Planning budgeted revenue.