Forecasting and Budgeting

Performance Reports

8.3 The kitchen of the Diamond Mask Hotel had the following figures: Two months: 1 July-31 August Budget Actual $ $ Month of September Budget Actual $ $ Kitchen staff wages Food Paper products Cleaning materials etc. Electricity Rent Depreciation 94 400 795 200 140 000 12 000 36 000 20 000 25 000 96 000 798 400 136 000 11 500 36 800 20 000 25 800 48 000 386 400 70 400 6 000 18 000 10 000 12 500 48 800 384 800 68 000 5 700 18 200 10 000 12 900 Required Prepare a performance report showing budget, actual and variances for the month of September and the year to 30 September 8.4 Refer to Question 8.3. Required (a) Using only the figures for the month of September, prepare a performance report that includes the percentage deviation from budget for each variance. (b) Diamond Mask Hotel has a policy that requires all variances that deviate plus or minus 3% from budget to be investigated. Which variances should be investigated? 8.6 Crake & Company provides you with the following data for the month of October: Budget $000 Actual $000 Net sales Cost of goods sold Expenses 250 125 105 260 133 108 Required Prepare an income statement performance report for October that shows each line item as a percentage of sales and each variance as a percentage of budget. 8.7 Irwill Ltd provides you with the following figures as at 30 June: Budget $000 Actual $000 Current assets Non-current assets Current liabilities Non-current liabilities Owners equity 310 500 220 310 280 280 655 300 410 225 Required Prepare a balance sheet performance report as at 30 June