Its a question from ACCT1116 course about variance analysis. Thanks in advance

View Help 2 Colibri Light Review 11 B Open in Desktop App V... A Tell me what you want to do General AI Question 6 - Variance Analysis (20 marks) 1 Question 6 Variance Analysis (20 marks) Teams Assume that owners decided to go ahead with the Canmore expansion (first introduced in question 4). The junior accountant has prepared the following report to compare the static budget (from question 4) to the actual results. The owners have asked you to complete a variance analysis Assignment Required: Part A (6 marks) Create a Static Budget Report Variance Analysis (Chapter 11), indicating whether variances are Favorable or Unfavorable. All variance amounts should be shown as positive numbers, Static Budget Amount Actual Results Variance Amount favorable or Unfavorable Sales in Units 4,152 519,000 4,520 $ 542,400 Sales 9 Less: Variable Costs: cost of Goods Sold 221.000 217.000 10 11 Sales Commissions 77.850 81 360 100 on Q6 Variances 02 Seg Income Stmt 17 Total Variable Canto Q3 Product Line Analysis Sheet3 Q1 Cost Classifications [17 x NE OP JIU- Variance Analysis (20 marks) Sales in Units Amount AME Sales 4,152 4,520 519,000 $ 542,400 Less: Variable Costs: Cost of Goods Sold 217,000 Sales Commissions Total Variable Costs 221,000 77,850 298,850 220,150 81,360 298,360 Contribution Margin 244,040 Less: Fixed Costs: 15 Advertising 16 Property Taxes 17 Rent Salaries & Wages Total Fixed Costs 21,000 10,000 25,000 10 000 41.000 108,000 45,000 104,000 180 000 184.000 Net Operating Income 40,150 60.040 Q3 Product Line Analinis QB Variances Sheet3 Q1 Cost Classifications Q2 Seg Income Stmt Home Search for or type a command File v Insert Data Review View Help Open in Desktop App Calibri Light 11 B N wa Av. fx Question 6 - Variance Analysis (20 marks) 9 Al Tell me what you want to do General Editing E! Total Fixed Costs 180,000 184,000 Net Operating Income 40,150 60,040 Discuss the variances you've identified in the static budget report (i.e. what are potential causes of the variances What is the weakness of using a static budget report to evaluate performance? (2 marks) 22 Required: Part B - The owners can see that the company sold a different amount of units than budgeted. They have asked you to create a flexible budget report (9 marks) (Chapter 11). Q6 Variances Q2 Seg Income Stmt Q3 Product Line Analysis Sheet3 Q1 Cost Classifications W ex N O P H0 Case Study DATA-... wete amttps-2-2Fnatcasharepoint.com- 2 2 5ACC File Search for of type a command Home Help Do Insert Data Calibri Light ors Review 11 View B v Open in Desktop App Av... C Tell me what you want to do E General Editing A1 fs Question 6 - Variance Analysis (20 marks) ams 24 Required: Part B - The owners can see that the company sold a different amount of units than budgeted. They have asked you to create a flexible budget report (9 marks) (Chapter 11). Flexible Budget Actual Results Amount 4,520 Variance Amount Favorable or Unfavorable Sales in Units 542,400 Sales Less: Variable Costs: 217,000 Cost of Goods Sold 81,360 Sales Commissions 298,360 244,040 Total Variable Costs Contribution Margin Less: Fixed Costs: 25.000 35 36 10,000 Advertising Q6 Variances 37 Property Taxes Q3 Product Line Analysis Q2 Seg income Stmt Q1 Cost Classifications Sheets x NE 0 + XLSM File viewer Microsoft Tear X C ce teams.microsoft.com/?tenantld Se7369 AAD 50194 ACCT1116 Case Study DATA... U File Home Insert Data Review View Help * Calibri Light Be depot.com - ACC Open in Deep op n 1 Question 6 - Variance Analysis (20 marks) which you want to do General Editing B Advertising Property Taxes Rent Salaries & Wages 25,000 10,000 41,000 Total Fixed Costs 108,000 41 Net Operating Income 184,000 60,040 Management was pleased on the results based on the static budget report. Should they be pleased? What does the flexible budget tell you? What are your recommendations to management based on the flexible budget report? 43 marks) 44 Q6 Variances Q2 Seg Income Stmt Q3 Product Line Analysis Q1 Cost Classifications Sheet3 X N 0