Question

Variance analysis reports can be prepared to examine the difference between budgeted and actual figures for:

Production in terms of cost, quantity and quality
Sales
Profit
Income per sales dollar
Growth rate

Required:
Complete the following variance analysis report.

Variance Analysis Report Actual Budget Variances
REVENUE 320,000 318,750
Direct Expense (variable) 101,000 100,000
Allocated general expenses (fixed) 78,000 80,000
Allocated service expenses:
Department 1 20,500 20,000
Department 2 65,000 62,500
Department 3 101,500 100,000
TOTAL EXPENSES
NET INCOME

Answer 1

Answer:

Following are the responses to the given question:

Explanation:

Report on varying analyses           Current              Fiscal      Variations    

Income                                             320000          318750      -1250  

Direct expenditure (variable)         101000           100000          -1000

General expenditure allocated (fixed) 78000   80000          2000

                   Operation costs allocated:

Section 1                             20500                20000          -500  

Section 2                            65000              62500           -2500

Section 3                            101500      100000           -1500  

Total expenses                  366000      362500            -3500

Total Income                     - 46000       -43750            -2250