managerial accounting

PROBLEM 8 Ann Olsson runs a small coffee shop and is analyzing the past 3 months of operations. Using the data below. prepare a exible budget based on the actual results. and then calculate the Overall variance for each line item. (You will first need to calculate and enter the rate for Supplies.) The average customer spends $7 per visit. Wages and the variable portion of Utilities are budgeted based on the number of employee hours. Supplies and Cost of Goods Sold are budgeted based on the number of customers. Static Actual Budget Results Employee Hours Worked 1.200 1,250 Number of Customers 2.400 2.350 Flexible Budget Variance F or U Sales $16,800 $17200 Variable Costs: Cast of Goods Sold @ $4.50 10.300 10.900 Wages @ $3.00 9.600 10,800 Utilities @ $0.60 960 925 Supplies @ 1.200 1.250 Total VG $1 1.760 $12,255 Contribution Margin $ 5.040 $ 4.945 Fixed Costs: Leases and Rents $ 1,800 $ 1.900 Utilities base costs 40 40 Total FC 5 1.340 $ 1.940 Net Income $ 3.200 $ 3.005