1 Perfect Patties, Inc. has several divisions. One division provides birthday parties at their facility. 2 Each party sold provides entertainment, decorations, food, and party favors for 10 children 8 The bookkeeper has prepared a report comparing actual results for the month of June to budgeted results. Perfect Parties Birthday Party Division Analysis of Revenues and Costs For the Month Ended June 30 Planning Budget Actual Results Variances 10 80 92 11 Number of parties 12 13 Revenue 14 Expenses: 15 Food costs 16 Party supplies 17 Party worker wages 18 Administrative salaries 19 Equipment depreciation 34.00 1 33 0336 $3,560 F 7,200 3,200 6,400 3,700 1,200 5,000 8,648 3,404 7,728 3,500 1,200 1,448 U 204 U 1,328 U 200 F - None - None 20 Rent 2,780 U 21 Total expense 22 Net operating income 23 Food costs. oartv suoolies and oarty worker wages are variable costs. 930010,080 780 F .. Sheet 1 A. 10 11 Number of parties 80 92 12 13 Revenue 14 Expenses: 15 Food costs 16 Party supplies 17 Party worker wages 18 Administrative salaries 19 Equipment depreciation 20 Rent 21 Total expense 22 Net operating income 23 Food costs, party supplies and party worker wages are variable costs. $ 36,000 39,560 $3,560 F 7,200 3,200 6,400 3,700 1,200 5,000 26,700 8,648 3,404 7,728 3,500 1,200 5,000 29,480 1,448 U 204 U 1,328 U 200 F . None . None 2,780 U $780 F 9,300 $ 10 24 Administrative salaries, equipment depreciation and rent are fixed costs 25 26 Prepare a new report for June using the flexible budget approach. 27 Enter all variances as positive amounts. If there is a variance, write an IF statements to indicate if it is F or U (using capital letters 28 If there is no variance, enter the word None. 29 30 31 32 Perfect Parties Birthday Party Division Flexible Budget Performance Report For the Month Ended june 30 . Sheet 1 28 If there is no variance, enter the word None. 29 30 31 32 Perfect Parties Birthday Party Division Flexible Budget Performance Report For the Month Ended June 30 Flexible Revenue and Actual Planning Budget Activity Variances Budget Spending Variances Results 34 Number of parties 35 36 Revenues 37 Expenses: 38 Food costs 39 Party supplies 40 Party worker wages 41 Administrative salaries 42 Equipment depreciation 43 Rent 44 Total expense 45 Net operating income 46 47 48 49 Sheet 1