Solved: Variance analysis Time estimate: 10 minutes Now that concerns with the takeaway business delivery options have been sorted out - the owners turn to the dine-in portion of You Wanna Pizza Me? and decide to start with the buffet all-you-can-eat $45 pizza option. They prepared a static budget and have requested that you complete the Flexible Budget, Flexible Budget Variances and evaluation as to whether the variances are Favourable or Unfavourable. Pizza materials are budgeted to be $9 per pizza Direct labour is budgeted at 0.5 direct labour hours at a cost of $35 per hour Variable overhead is budgeted at $5 per pizza The business doesn't plan to have any variable selling and admin costs. Complete the table below: To enter each amount in the table, please enter just the number in whole dollars. No commas or dollar signs or spaces before or after the number. For example, if your answer is $25 - this should be entered as "25". If your answer is $1,000 - this should be entered as "1000". Negative numbers should include a "-" before the number, if your answer is -$500 - it should be entered as "-500". Variances should be evaluated using the letter F or U only. This is an auto-marked question using exact text matching. Variance Analysis Item Static budget Flexible budget Actual Flexible budget variance Evaluation of variance (F/U) Sales (units) 1800 pizzas 2150 pizzas Price 45.00 Sales revenue 81,000 [Fill in the blank] 86,000 [Fill in the blank] [Fill in the blank] Less COGS DM 16,200 [Fill in the blank] 21,500 [Fill in the blank] [Fill in the blank] DL 31,500 [Fill in the blank] 30,100 [Fill in the blank] [Fill in the blank] VOH 9,000 [Fill in the blank] 11,825 [Fill in the blank] [Fill in the blank] FOH 6,120 [Fill in the blank] 5,890 [Fill in the blank] [Fill in the blank] GROSS PROFIT 18,180 [Fill in the blank] 16,685 [Fill in the blank] [Fill in the blank] Var S&A 0 [Fill in the blank] 1,290 [Fill in the blank] [Fill in the blank] Fixed S&A 2,400 [Fill in the blank] 3,000 [Fill in the blank] [Fill in the blank] NET PROFIT 15,780 [Fill in the blank] 12,395 [Fill in the blank] [Fill in the blank] You've also been provided with the following information about conditions over the last month The drought has affected dairy and fresh fruit and vegetable prices Staff have become more efficient at doing their jobs There has been an increase in the price of electricity and cleaning supplies The business made some savings by paying rent in advance The business decided to run sponsored posts on social media The manager received a bonus | Variance Analysis | Accounting | Black Tom

Question 1A - Variance analysis (time recommendation: 16 minutes) You have been provided with the following information from BBB and have been asked to conduct a variance analysis - specifically a flexible budget, flexible budget variance and whether variances are favourable (mark with an F) or unfavourable (mark with a U). (Each box is worth 0.27586 marks) Budgeted burgers to be sold: 5500 burgers at $12.50 eachDirect material $2.50 per burgerDirect labour $1.80 per burgerVariable overhead $0.50 per burgerFixed overhead $5800Variable selling and admin. $1.25 per burger (burger packaging)Fixed selling and admin $1900Actual burgers sold: 7000 burgers To enter each amount in the table, please enter just the number in whole dollars (no cents). No commas or dollar signs or spaces after the number. Negative variances should have a minus before the number. Enter only the number of dollars, do not enter the dollar, "$" , symbol. Therefore if your answer is "$10,000", enter only "10000". If your answer is "-$1,000", enter "-1000". This is an auto-marked question and your answers must be just the number. Where you are asked for the variance - please enter only F or U in the response box. Variance analysis for BBB Static budget Flexible budget Actual Flexible budget variance Favourable or unfavourable Total sales 68750 [Fill in the blank] 80500 [Fill in the blank] [Fill in the blank] Less COGS Direct materials 13750 [Fill in the blank] 24500 [Fill in the blank] [Fill in the blank] Direct labour 9900 [Fill in the blank] 17500 [Fill in the blank] [Fill in the blank] Variable OH 2750 [Fill in the blank] 7000 [Fill in the blank] [Fill in the blank] Fixed OH 5800 [Fill in the blank] 7500 [Fill in the blank] [Fill in the blank] GROSS PROFIT 36550 [Fill in the blank] 24000 [Fill in the blank] [Fill in the blank] Variable S&A 6875 [Fill in the blank] 10500 [Fill in the blank] [Fill in the blank] Fixed S&A 1900 [Fill in the blank] 2500 [Fill in the blank] [Fill in the blank] NET PROFIT 27775 [Fill in the blank] 11000 [Fill in the blank] [Fill in the blank] The business has also provided you with the following additional pieces of information: The business had a massive increase in sales after a visit to BBB by Chris Hemsworth and some other actors who were in Western Sydney filming for the latest Marvel project. The business saw a 20% increase in the cost of fresh ingredients (beef mince, salad and buns) due to shortages because of the floods and inflation To keep up with demand, new less experienced staff were brought on board To take advantage of the new social media exposure, BBB decided to spend more on promoting social media posts and putting their branding more clearly on the boxes used to deliver the burgers to customers.

Question 1A - Variance analysis (time recommendation: 16 minutes) You have been provided with the following information from BBB and have been asked to create a variance analysis - specifically a flexible budget, flexible budget variance and whether variances are favourable (mark with an F) or unfavourable (mark with a U). (Each box is worth 0.27586 marks) Budgeted burgers to be sold: 5600 burgers at $12 eachDirect material $2.50 per burgerDirect labour $1.50 per burgerVariable overhead $0.25 per burgerFixed overhead $6000Variable selling and admin $1.25 per burger (packaging for burgers)Fixed selling and admin $2000Actual burgers sold: 6200 burgers To enter each amount in the table, please enter just the number in whole dollars (no cents). No commas or dollar signs or spaces after the number. Negative variances should have a minus before the number. Enter only the number of dollars, do not enter the dollar, "$" , symbol. Therefore if your answer is "$10,000", enter only "10000". If your answer is "-$1,000", enter "-1000". This is an auto-marked question and your answers must be just the number. Where you are asked for the variance - please enter only F or U in the response box. Variance analysis for BBB Static budget Flexible budget Actual Flexible budget variance Favourable or unfavourable Total sales 67200 [Fill in the blank] 68200 [Fill in the blank] [Fill in the blank] Less COGS Direct materials 14000 [Fill in the blank] 17050 [Fill in the blank] [Fill in the blank] Direct labour 8400 [Fill in the blank] 9920 [Fill in the blank] [Fill in the blank] Variable OH 1400 [Fill in the blank] 1426 [Fill in the blank] [Fill in the blank] Fixed OH 6000 [Fill in the blank] 6500 [Fill in the blank] [Fill in the blank] GROSS PROFIT 37400 [Fill in the blank] 33304 [Fill in the blank] [Fill in the blank] Variable S&A 7000 [Fill in the blank] 8060 [Fill in the blank] [Fill in the blank] Fixed S&A 2000 [Fill in the blank] 1800 [Fill in the blank] [Fill in the blank] NET PROFIT 28400 [Fill in the blank] 23444 [Fill in the blank] [Fill in the blank] The business has also provided you with the following additional pieces of information: The price of beef mince has increased due to the poor weather and rising global prices for stock/cattle The government approved an increase in the award wage for employees working in fast food There has been increased competition in the food truck burger market over the last 3 months The food truck has been running smoothly with some efficiencies gained, but the business spent some money upgrading the hotplate in the truck

Variance analysis (time recommendation - 16 minutes) Required: You have been provided with the following information from Hangry Donuts and have been asked to create a variance analysis - specifically a flexible budget variance analysis for the Iced Vovo donut and whether variances are favourable (mark with an F) or unfavourable (mark with a U). (each box is worth 0.4444 marks) Budgeted donuts to be sold: 2,200 donuts at $8.00 eachDirect material $2.25 per donutDirect labour $1.75 per donutVariable overhead $0.40 per donutFixed overhead $5,500.00Variable selling and admin. $0.40 per donutFixed selling and admin $112Actual burgers sold: 5,400 donut To enter each amount in the table, please enter just the number in whole dollars (no cents). No commas or dollar signs or spaces after the number. Negative variances should have a minus before the number. For example, if your answer is -$15,500, enter "-15500" into the box. Remember to mark the variances as favourable (mark with an F) or unfavourable (mark with a U). This is an auto-marked question and your answers must be just the number or letter. Flexible Budget Variance Analysis Static budget Flexible budget Actual Flexible budget variance Favourable or unfavourable Total sales 17,600 [Fill in the blank] 59,400 [Fill in the blank] [Fill in the blank] Less COGS Direct materials 6,050 [Fill in the blank] 13,500 [Fill in the blank] [Fill in the blank] Direct labour 3,300 [Fill in the blank] 8,640 [Fill in the blank] [Fill in the blank] Variable OH 220 [Fill in the blank] 2,700 [Fill in the blank] [Fill in the blank] Fixed OH 1,000 [Fill in the blank] 5,200 [Fill in the blank] [Fill in the blank] GROSS PROFIT 7,030 [Fill in the blank] 29,360 [Fill in the blank] [Fill in the blank] Variable S&A 528 [Fill in the blank] 5,940 [Fill in the blank] [Fill in the blank] Fixed S&A 112 [Fill in the blank] 1,800 [Fill in the blank] [Fill in the blank] NET PROFIT 6,390 [Fill in the blank] 21,620 [Fill in the blank] [Fill in the blank] Additional information: The growth in sales compared to when the business was first starting means they are able to purchase some items in larger quantities for less. There are increasing inflationary pressures, so to retain staff, Hangry Donuts are having to pay slightly more per hour to staff. You may also wish to incorporate any information you may know about the increasing cost of living. There are economies of scale related to purchasing in bulk from the packaging supplier. The business has shifted to a new social media manager who charges slightly less.

Variance analysis Time recommendation: 12 minutes At the meeting to present your financial statement analysis the following interaction takes place: CEO Mei Ling: "How do we turn the business around to being more profitable? What information do you need?" You: "We need to start with some Variance Analysis, let's dig down further into your budgets and your actual performance. Can I see your flexible budget?" CEO Mei Ling: " Uhhh what's a flexible budget?" she says with a confused tone You: "Ok - get me as much information related to your budgets and your actual performance as you can" Here is the information SneakElite has provided to you. They used this information to construct their budget: Average direct materials per pair of sneakers: $85 Average direct labour per pair of sneakers: 3 hours at $15 per hour Average variable overhead rate per direct labour hour: $3 per direct labour hour Fixed overhead for the manufacturing facilities: $250,000 Average variable selling and packaging per pair of sneakers: $15 Fixed overhead for the head office facilities: $500,000 Fixed selling and packaging costs: $100,000 Average selling price per pair of sneakers: $350 Budgeted sales quantity: 16,500 pairs of shoes Actual sales quantity: 15,400 pairs of shoes Required: You've been asked to prepare a Variance Analysis. Use the table below. You must calculate the Flexible Budget and Flexible Budget Variance. (each box is worth 0.3 marks) To enter each amount in the table, please enter just the number in whole dollars (no cents). No commas or dollar signs or spaces after the number. Negative variances should have a minus before the number. For example, if your answer is -$15,500, enter "-15500" into the box. This is an auto-marked question using exact text matching and your answers must be just the number. Variance Analysis Table Static Budget ($) Flexible Budget ($) whole numbers only Actual ($) Flexible Budget Variance ($)whole numbers only Total sales 5,775,000 [Fill in the blank] 5,005,000 [Fill in the blank] Less COGS Direct materials 1,402,500 [Fill in the blank] 1,771,000 [Fill in the blank] Direct labour 742,500 [Fill in the blank] 1,078,000 [Fill in the blank] Variable overhead 148,500 [Fill in the blank] 215,600 [Fill in the blank] Fixed overhead - manufacturing 250,000 [Fill in the blank] 350,000 [Fill in the blank] GROSS PROFIT 3,231,500 [Fill in the blank] 1,590,400 [Fill in the blank] Variable selling and packaging 247,500 [Fill in the blank] 385,000 [Fill in the blank] Fixed selling and packaging 100,000 [Fill in the blank] 210,000 [Fill in the blank] Fixed head office costs 500,000 [Fill in the blank] 2,000,000 [Fill in the blank] NET PROFIT 2,3840,000 [Fill in the blank] -1,004,600 [Fill in the blank]

类似问题

Chris tells you that he budgeted the market size to be around 100,000 frames. However, the actual market size was 130,000 frames. Given this information, calculate the Market Size Variance.

Which of the following interpretations of the materials variances makes sense:

Tell me which statement is consistent with the variances you have calculated so far.

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