Master Budget Performance report for the month ended June 30 Actual Master Budget Master Budget Working Varlance Actual - Budget Volume (in Cases) 21,460 20,000 Given 1,46C Sales Revenue 1,131,020 1,000,000 (20,000 x 50 ) 131,020 Less: Variable Expenses: 682,880 82,880 8,68 Cost of Goods Sold Sales Commission Shipping Expenses Bad Debt Expense Contribution Margin 600,000 (20,000 x 30) 50,000 (20,000 x 25) 40,000 (20,000 x 2) 9,000 1,000,000 X 90% x 196 ) 301,000 58,685 44,213 16,930 328,312 4,213 7,930 27,312 Less: Fixed expenses Salaries 3,000 Lease on distribution center -1,500 43,000 15,500 12,000 7,750 40,000 Given 17,000 Given 12,000 Given 10,000 Given 11,000 Given Depreciation on fleet & equip. Advertising Office rent, phone, internet Opearting Income -2.250 12,300 1,300 237,762 211,000 26,762 Flexible Budget Performance report for the month ended June 30 Varlance = Actual Flexible Budget Flexible Budget Working Actual - Budget Volume (in Cases) 21,460 21,460 Same level of Sale Sales Revenue 1,131,020 1,073,000 (21,460 x 50 ) 58,020 Less: Varlable Expenses: Cost of Goods Sold 39,080 Sales Commission 5,035 682,880 58,685 44,213 16,930 328,312 643,800 (21,460 x 30 ) 53,650 (21,460 x 25) 42920 (21,460 x 2) 9,657 1,073,000 x 90% x 19) Shipping Expenses Bad Debt Expense 1,293 7,273 Contribution Margin 322,973 5,339 Less: Fixed expenses Salaries 40,000 Given 3,000 Lease on distribution center 17,000 Given -1,500 Depreciation on fleet & equip. 43,000 15,500 12000 7,750 12300 Advertising 12,000 Given 10,000 Given 11,000 Given -2.250 Office rent, phone, internet 1,300 Opearting Income 237,762 232,973 4,789 f. How much of the master budget variance for Advertising Expenses was caused by an unanticipated increase in volume? For U? g. How much of the master budget variance for CGS was caused by some factor other than volume? (Hint: this is NOT a manufacturing business). $_ For U? What could account for this variance? h. How much of the master budget variance for Sales Revenue was caused by some factor other than volume? $_ _F or U? What could account for this variance? i. How much of the master budget variance for Advertising Exp. was caused by some factor other than volume? $_ For U? What could account for this variance