Question
EFG Services Ltd prepares a monthly budget for its administrative expenses. The budget for June 2024 is as follows: Salaries: $20,000 Utilities: $2,000 Office supplies:
EFG Services Ltd prepares a monthly budget for its administrative expenses. The budget for June 2024 is as follows:
Salaries: $20,000
Utilities: $2,000
Office supplies: $1,500
Miscellaneous expenses: $1,000
Actual expenses for June 2024 were:
Salaries: $21,000
Utilities: $1,800
Office supplies: $1,700
Miscellaneous expenses: $1,200
Required: a. Prepare a budgeted vs. actual expenses report for June 2024. b. Calculate the variance for each expense category. c. Analyze the variances and provide possible reasons for the differences. d. Suggest management actions to control administrative expenses.
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