9 Answer the following questions What is the Flex budget variance for operating income $ F or U What is the Volume variance for operating income $ F or U c Does the combination of the flex budget variance and volume variance sum to the master budget variance for operating income Y or N Should it always sum to the master budget variance Y or N d How much of the master budget variance for Sales revenue was caused by an unanticipated increase in volume F or U e How much of the master budget variance for Commissions Exp was caused by an unanticipated increase in volume F or U f How much of the master budget variance for Advertising Expenses was caused by an unanticipated increase in volume F or U g How much of the master budget variance for CGS was caused by some factor other than volume (Hint this is NOT a manufacturing business) $ F or U What couldaccount for this variance h How much of the master budget variance for Sales Revenue was caused by some factor other than volume $ F or U What could account for this variance i How much of the master budget variance for Advertising Exp was caused by some factor other than volume $ F or U What could account for this variance j Auditors always look at the variances between actual and budget or actual and last year Say you were auditing this client and they gave you the following story (below) Is the story consistent with the overall pattern of variances Which elements of the story are consistent with the explanations Which variances are inconsistent, or left unexplained In the table below, classify EACH ACCOUNT on the budget according to whether the variances in the performance report are consistent or inconsistent with the clients story, or unexplained by the clients story Place an X in the appropriate column If the Flexible Budget Variance and Sales Volume Variance differ with respect to one account (i e , one is consistent and one is inconsistent) then indicate which belongs in which column Consistent Inconsistent Unexplained Sales Revenue Cost of Goods Sold Commission Shipping Expense Bad Debt Expense Salaries Lease of Distribution Center Depreciation of fleet and equip Advertising Office rent, phone, Internet Automatisch opslaan NO w C ATM Flexible budget Haagsma excel Voor het laatst gewijzigd za om 04 18 Start Invoegen Tekenen Pagina indeling Formules Gegevens Controleren Beeld Uitleg Delen Opmerkingen Calibri (Hoofdtekst) 11 v 2 Teruglaos Standaard X IG AY A WA Invoegen DX Verwijderen Opraak O Plakken BIU Samenvoegen en centreren sv E Voorwaardeljke Opmaken Calsten opmaak als tabel Sorteren Zoeken en en filteren selecteren Ja Nee Herstelde werkmappen openen Uw recente wijzigingen zijn opgeslagen Wilt u verder werken waar u was gebleven F21 x Advertising B c F F K 1 i M N P 0 R S T U G H 5 TIXIOUS 5 $ 12 300,00 $ 11 000,00 $ $ 237 762,00 S 211 000,00 S Chicerent,phane, net , Operating income 1 22 5 11,82 12,68 12 250,XII 1 300,00 26 762,00 Na No No 22 15 Investigation rule 23 24 25 AAAIust means your column wilt 26 ie number Increase column width 27 28 29 on the cel where you want the answer 30 in It) and then click on the cel you a sign again ( l and click on the second 3 32 e same fashion for multiple calls Use goals If you have an array of celista 11 33 34 divide, use the symbol Kelsey's Frozen Confectionaries Fexible Budget Performance Report For the month ended June 30 FLEXIBLE ACTUAL BUDGET 21 463 MASTER BUDGET 20 000 Volume (in Casesi 21 450 $ $ 1 131 620 00 $1 073 000,00 $ 1 000 000,00 $ $ $ $ $ $ $ 692 800,00 58 585 00 44 213,00 16 930,00 328 312,00 S 643 800,00 $ 53 650,00 $42 920,00 S 9 657,00 $ 372 970,00 $ $ $ $ $ Sales Revue Less Variablc Expenses Cost of Goods Sulc Sales Commission Shipping Expenses Vad Uept Der ses Contribution Margir Liss Fixed Expenses Salaries lepon Disin Center Deprec On teet equip Advertising Officerent, phone, ne Operating income 36 ds when you want smiar forumulas in 37 38 uits after entering formulas to make 39 ou really want it to do 40 42 4 42 43 44 45 46 47 48 45 50 51 52 53 54 53 56 57 58 59 60 co 600 000,00 50 000,00 40 000 00 9 000,00 301 000,00 $ $ $ $ $ $ 43 000,00 15 500 00 12 000,00 2 750,00 12 300,00 237 762,00 $ $ 40 000,00 $ 17 000,00 S $ 12 000,00 $ 10 000,00 $ 11 000,00 $ 232 973,00 $ $ $ $ $ 40 000,00 17 000,00 12 000,00 10 000,00 11 000,00 211 000,00 Performance Report Gereed E 100

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9. Answer the following questions: What is the Flex budget variance for operating income? $____________F or U? What is the Volume variance for operating income?

9. Answer the following questions:

What is the Flex budget variance for operating income? $____________F or U?

What is the Volume variance for operating income? $____________F or U?

c. Does the combination of the flex budget variance and volume variance sum to the master

budget variance for operating income? Y or N?

Should it always sum to the master budget variance? Y or N?

d. How much of the master budget variance for Sales revenue was caused by an unanticipated

increase in volume?__________________ F or U?

e. How much of the master budget variance for Commissions Exp. was caused by an

unanticipated increase in volume?__________________ F or U?

f. How much of the master budget variance for Advertising Expenses was caused by an

unanticipated increase in volume?__________________ F or U?

g. How much of the master budget variance for CGS was caused by some factor other than

volume? (Hint: this is NOT a manufacturing business). $__________ F or U?

What couldaccount for this variance?

h. How much of the master budget variance for Sales Revenue was caused by some factor

other than volume? $__________ F or U?

What could account for this variance?

i. How much of the master budget variance for Advertising Exp. was caused by some factor

other than volume? $__________ F or U?

What could account for this variance?

j. Auditors always look at the variances between actual and budget or actual and last year.

Say you were auditing this client and they gave you the following story (below). Is the

story consistent with the overall pattern of variances? Which elements of the story are

consistent with the explanations? Which variances are inconsistent, or left unexplained?

In the table below, classify EACH ACCOUNT on the budget according to whether the variances

in the performance report are consistent or inconsistent with the clients story, or unexplained

by the clients story. Place an X in the appropriate column. If the Flexible Budget Variance

and Sales Volume Variance differ with respect to one account (i.e., one is consistent and one is

inconsistent) then indicate which belongs in which column.

	Consistent	Inconsistent	Unexplained
Sales Revenue
Cost of Goods Sold
Commission
Shipping Expense
Bad Debt Expense
Salaries
Lease of Distribution Center
Depreciation of fleet and equip
Advertising
Office rent, phone, Internet

image text in transcribed

Automatisch opslaan NO w C -.. ATM Flexible budget Haagsma excel - Voor het laatst gewijzigd: za om 04:18 Start Invoegen Tekenen Pagina-indeling Formules Gegevens Controleren Beeld Uitleg Delen Opmerkingen Calibri (Hoofdtekst) 11 v 2. Teruglaos Standaard X IG AY ~ A WA Invoegen DX Verwijderen Opraak O Plakken BIU :- - - Samenvoegen en centreren sv E % Voorwaardeljke Opmaken Calsten opmaak als tabel Sorteren Zoeken en en filteren selecteren Ja Nee Herstelde werkmappen openen? Uw recente wijzigingen zijn opgeslagen. Wilt u verder werken waar u was gebleven? F21 x Advertising B c F F K 1 i M N P 0 R S T U > G H 5 TIXIOUS 5 $ 12.300,00 $ 11.000,00 $ $ 237.762,00 S 211 000,00 S Chicerent,phane, net , Operating income 1 -22.5% 11,82% 12,68% 12.250,XII 1.300,00 26.762,00 Na No No 22 15% Investigation rule 23 24 25 AAAIust means your column wilt 26 ie number. Increase column width 27 28 29 on the cel where you want the answer 30 in It) and then click on the cel you a sign again (+l and click on the second 3 32 e same fashion for multiple calls. Use goals. If you have an array of celista 11. 33 34 divide, use the / symbol. Kelsey's Frozen Confectionaries Fexible Budget Performance Report For the month ended June 30 FLEXIBLE ACTUAL BUDGET 21.463 MASTER BUDGET 20.000 Volume (in Casesi 21.450 $ $ 1.131.620.00 $1.073.000,00 $ 1.000.000,00 $ $ $ $ $ $ $ 692.800,00 58.585.00 44.213,00 16.930,00 328 312,00 S 643.800,00 $ 53.650,00 $42.920,00 S 9.657,00 $ 372.970,00 $ $ $ $ $ Sales Revue Less: Variablc Expenses Cost of Goods Sulc Sales Commission Shipping Expenses Vad Uept Der ses Contribution Margir Liss: Fixed Expenses Salaries lepon Disin Center Deprec. On teet/equip Advertising Officerent, phone, ne Operating income 36 ds when you want smiar forumulas in 37 38 uits after entering formulas to make 39 ou really want it to do 40 42 4 42 43 44 45 46 47 48 45 50 51 52 53 54 53 56 57 58 59 60 co 600.000,00 50.000,00 40.000.00 9.000,00 301.000,00 $ $ $ $ $ $ 43.000,00 15.500.00 12.000,00 2.750,00 12.300,00 237.762,00 $ $ 40.000,00 $ 17.000,00 S $ 12.000,00 $ 10.000,00 $ 11.000,00 $ 232.973,00 $ $ $ $ $ 40.000,00 17.000,00 12.000,00 10.000,00 11.000,00 211.000,00 Performance Report + Gereed E- + + 100%