Burberry Amusements is an owner/operator of several amusement parks. Following is a partial performance report that a Burberry manager built in Excel.

Requirements
1. Using the Excel file provided in MyLab Accounting, calculate total sales revenue, total expenses, and operating income in the ACTUAL and BUDGET columns.
2. Next, complete the VARIANCE column. Use the absolute reference function so that the variance displays as a positive number.
3. Complete “F or U” column using the IF function. If the variance in a given row is favorable, an “F” should display in the variance’s row in Column E. If the variance is unfavorable, a “U” should display in the variance’s row in Column E.
4. Which revenue variances are favorable?
5. Which expense variances are favorable?
6. Is the operating income variance favorable or unfavorable?
7. If the company has a policy that all variances greater than $100,000 should be evaluated, which variances should be investigated?

Transcribed Image Text:

1 2 Sales Revenue: Admissions Food service 3 Merchandise Games Parking Locker rental 456 7 8 9 Total sales revenue 10 Expenses: 11 12 13 Park employee wages Server wages Game operations $ $ B ACTUAL $ 29,792,670 $ 29,490,000 $ 24,756,005 $ 24,659,000 $ 19,007,610 $ 19,198,000 $ 8,811,614 $ 9,150,000 2,591,664 $ 2,501,000 2,077,383 $ 2,130,000 $ $ C BUDGET 10,301,424 $ 10,307,000 19,947,090 $ 19,884,000 6,195,284 $ 6,030,500 D VARIANCE E For U