1. (a) Calculate the budget variances for 1997 and 1998. for both the income statement and balance sheet using Sheet1 of the phenix.xls spreadsheet. What are the main differences between balance sheets? What were the significant static budget variances on the income statement?

(b) Calculate volume and interest rate variances for loans and other loan-based income statement items using Sheet2 of the phenix.xls spreadsheet. To what extent were significant loan-related static budget variances on the income statement due to volume and interest rate fluctuations?

(c) Calculate volume and rate variances for share dividends and other share-based income statement items using Sheet 2 of the phenix.xls spreadsheet as a model. Assume in this analysis that fee and commission income, delinquent payments, and other operating expenses have equity rather than loans as their main cost factor. Were significant stock-related budget variances on the income statement due to volume fluctuations versus rate fluctuations?

Static Budget Variances Phenix Federal Credit Union