Budgeting at Intel

Values:

• Budgeted Sales: $70,000,000
• Actual Sales: $68,000,000
• Variable Costs: $25,000,000
• Fixed Costs: $20,000,000

Requirements:

1. Prepare a budget variance report.
2. Calculate the sales volume variance.
3. Analyze the potential reasons for the variance.
4. Discuss corrective actions.