Budget Preparation and Variance Analysis

Budget Details:

• Sales Budget:
  • Forecasted Sales: $8,000,000
  • Actual Sales: $7,500,000

• Expense Budget:
  • Forecasted Expenses: $4,500,000
  • Actual Expenses: $4,700,000

Requirements:

• Prepare a budget variance analysis for sales and expenses.
• Calculate the variance for each category.
• Analyze the reasons for the variances.
• Present the analysis in a table format.
• Discuss potential actions to address budget variances.