Case 3: Flexible budgets and variance analysis Mary is a principal of a school which provides...

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Case 3: Flexible budgets and variance analysis Mary is a principal of a school which provides education and accommodation for students. The school secretary prepared the following summary of costs for 2018, including a column showing the original budget for 2018. The School-cost analysis Number of students Fixed costs 2018 budget 200 2018 actual 180 Utilities $ 60,000 $ 64,000 Janitorial services 40,000 38,000 Repairs and maintenance 32,000 28,000 Salaries for non-convent employees 180,000 190,000 Total fixed costs 312,000 320,000 Variable costs Food 1000,000 920,000 Clothing 90,000 $2,000 Laundry & Linen Service 30,000 25,000 Educational costs 60,000 52,000 Allowances 50,000 48,000 Total variable costs 1,230,000 1,127,000 Total Costs 1,542,000 1,447,000 Maryis pleased that total costs were below budget for the year, but she wonders if this is partly due to the fact that the school enrolled fewer children than expected for the year. Required: (1) Prepare a flexible budget for 2018 based on the number of enrolled in 2018. children actually (2) Should Marybe satisfied with the school's cost management in 2018? Explain. Case 3: Flexible budgets and variance analysis Mary is a principal of a school which provides education and accommodation for students. The school secretary prepared the following summary of costs for 2018, including a column showing the original budget for 2018. The School-cost analysis Number of students Fixed costs 2018 budget 200 2018 actual 180 Utilities $ 60,000 $ 64,000 Janitorial services 40,000 38,000 Repairs and maintenance 32,000 28,000 Salaries for non-convent employees 180,000 190,000 Total fixed costs 312,000 320,000 Variable costs Food 1000,000 920,000 Clothing 90,000 $2,000 Laundry & Linen Service 30,000 25,000 Educational costs 60,000 52,000 Allowances 50,000 48,000 Total variable costs 1,230,000 1,127,000 Total Costs 1,542,000 1,447,000 Maryis pleased that total costs were below budget for the year, but she wonders if this is partly due to the fact that the school enrolled fewer children than expected for the year. Required: (1) Prepare a flexible budget for 2018 based on the number of enrolled in 2018. children actually (2) Should Marybe satisfied with the school's cost management in 2018? Explain.