D H 1 Perfect Parties, 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. 4 S 670 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 9 10 11 Number of parties 12 13 Revenue 14 Expenses: 15 Food costs 80 92 $ 36,000 $ 39,560 S 3,560 F 7,200 8,648 1,448 U 16 Party supplies 3,200 3,404 204 U 17 Party worker wages 6,400 7,728 1,328 U 18 Administrative salaries 3,700 3,500 200 F 19 Equipment depreciation. 1,200 1,200 -None 20 Rent 5,000 5,000 None 21 Total expense 26,700 29,480 2,780 U 22 vet operating income S 9,300 S 10,080 $ 780 F 23 food costs, party supplies and party worker wages are variable costs. 24 Administrative salaries, equipment depreciation and rent are fixed costs 25 Sheet 1 L C G M Saved K L 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. 30 ARRER 31 32 Perfect Parties Birthday Party Division Flexible Budget Performance Report For the Month Ended June 30 Planning Flexible 33 Budget Activity Variances Budget Revenue and Spending Variances Actual 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 Sheet 1