Prepare a flexible budget for the month ending 28 February 2019. Present the sales volume variance and the sales price variance for each product. Also, present the Direct Materials variance and Direct Labor variance for each product? Please use the Excel File given. Thank you!
Sally Smith graduated with mediocre marks and limited prospects. However, she enjoyed the great sporting facilities and vibrant cultural activities of campus life. Less than a year after her graduation, she started a pop-up Gelato bar on her University Campus. Sally/s aunt generously agreed to invest $20,000, seed capital for Compus Geloto Pty Ltd ('CG'). Sally and her aunt owned one share each. Sally sold gelato, ice-cream, and frozen yogurt. Students liked the cool refreshing treats and soon CG had four outlets at various locations on campus. In 2008, Sally started expanding the business to other campuses around Brisbane. By 2012, CG was operating 15 pop-up Gelato bars, with 25 employees. Sally then decided that CG should make its own gelato and froren yogurt. She established a small factory in her hometown, Gatton, 94km west of Brisbane. The cost of land in Gatton is relatively low. High quality, fresh ingredients are readily avallable directly from orchids and dairies around Gatton; and Sally's family and friends, living in Gaton, with otherwise limited employment opportunities, were keen to work at the CG factory. One of Sally's high school friends operates a freight service between Toowoomba and Brisbane. He arranged a delivery run to pick up gelato and frozen yogurt from CG's factory in Gatton and deliver it, In a refrigerated van, directly to each pop-up bar in Brisbane, five days a week. By 2015, CG was structured around an investment center and three profit centers. 1 The factory In Gatton was an investment center. Sally hired three managers (Susan, Jane, and Jasmin) to manage operations at the pop-up Gelato bards in three different areas in Brisbane (see Figure 1). Those area-heads were responsible for revenues and expenses (Le, profits), hence the organizational units were profit centers. Each day, area managers estimate demand in their respective area for the next day and submit their orders to the factory before Spm. All orders are picked, packed, and dellvered overnight, arriving at the pop-up bars before 8am the next day. The factory sells all its product to the profit centers at a pre-determined foctory price. Sally reviews and adjusts the factory price at the end of each month. The pop-up gelato bars are unable to store products over-night. Stock that is not sold by the end of the day is discarded. If an area is short on stock, products may be transferred from a neighboring area at the foctory price plus 10s, subject to avaliability. The buyer organizes pick-up and transport. Ekhibit 1 outlines the performance of the North Area for the month ended 28 February 2019. lane, the manager of CG's operations in North Arisbane, has been very busy in recent Whrstarent femter means the penoe (manapes) who is runeing that anit is reponsble for Balance stint and months, she has negotiated and secured contracts to supply gelato and frozen yogurt to highend restaurants in the Area. The restaurants pay 15% above the factory price. She relays the sales orders to the factory as and when she receives them. The ordered goods are delivered directly from the factory to the respective restaurants the next morning. The restauranteurs are impressed with the competitive prices, the quality of CG s product and prompt delivery. Goods are consistently delivered, in full and on time. As a result, Jane's sales volume for the month has more than doubled compared to the same month in the previous year. Occasionally, Jane receives urgent orders from restaurants and is able to fill them on the same day by transferring products from neighboring areas. The cost of these same-day deliveries tends to be relatively high, but they keep the restaurant customers happy. Campus Gelato Pty Ltd - North Aroa ACC341 - Case Assignment Assignment Part 1 1. Prepare a fexible budget for the month ending 28 February 2019 . 2. Present the sales volume variance and the siles price variance foreach product. 3. Also, present the Direct Materiai variance and Direct Labor variance for each product. Note that atter you hyve set up the fienible budcet you can'see these variances without further calaulations. I recommend you vse the Facel fie "CampusGelato flex Bdg PAAT r. Subinit responses to quetions 1 to 3 on 02 stove by Wednesday April 19stmidnight (You can submit the abovementioned ficel theet is modfed version). I will port solutions Campus Getalo Ptyr Lhd - North Ared Sally Smith graduated with mediocre marks and limited prospects. However, she enjoyed the great sporting facilities and vibrant cultural activities of campus life. Less than a year after her graduation, she started a pop-up Gelato bar on her University Campus. Sally/s aunt generously agreed to invest $20,000, seed capital for Compus Geloto Pty Ltd ('CG'). Sally and her aunt owned one share each. Sally sold gelato, ice-cream, and frozen yogurt. Students liked the cool refreshing treats and soon CG had four outlets at various locations on campus. In 2008, Sally started expanding the business to other campuses around Brisbane. By 2012, CG was operating 15 pop-up Gelato bars, with 25 employees. Sally then decided that CG should make its own gelato and froren yogurt. She established a small factory in her hometown, Gatton, 94km west of Brisbane. The cost of land in Gatton is relatively low. High quality, fresh ingredients are readily avallable directly from orchids and dairies around Gatton; and Sally's family and friends, living in Gaton, with otherwise limited employment opportunities, were keen to work at the CG factory. One of Sally's high school friends operates a freight service between Toowoomba and Brisbane. He arranged a delivery run to pick up gelato and frozen yogurt from CG's factory in Gatton and deliver it, In a refrigerated van, directly to each pop-up bar in Brisbane, five days a week. By 2015, CG was structured around an investment center and three profit centers. 1 The factory In Gatton was an investment center. Sally hired three managers (Susan, Jane, and Jasmin) to manage operations at the pop-up Gelato bards in three different areas in Brisbane (see Figure 1). Those area-heads were responsible for revenues and expenses (Le, profits), hence the organizational units were profit centers. Each day, area managers estimate demand in their respective area for the next day and submit their orders to the factory before Spm. All orders are picked, packed, and dellvered overnight, arriving at the pop-up bars before 8am the next day. The factory sells all its product to the profit centers at a pre-determined foctory price. Sally reviews and adjusts the factory price at the end of each month. The pop-up gelato bars are unable to store products over-night. Stock that is not sold by the end of the day is discarded. If an area is short on stock, products may be transferred from a neighboring area at the foctory price plus 10s, subject to avaliability. The buyer organizes pick-up and transport. Ekhibit 1 outlines the performance of the North Area for the month ended 28 February 2019. lane, the manager of CG's operations in North Arisbane, has been very busy in recent Whrstarent femter means the penoe (manapes) who is runeing that anit is reponsble for Balance stint and months, she has negotiated and secured contracts to supply gelato and frozen yogurt to highend restaurants in the Area. The restaurants pay 15% above the factory price. She relays the sales orders to the factory as and when she receives them. The ordered goods are delivered directly from the factory to the respective restaurants the next morning. The restauranteurs are impressed with the competitive prices, the quality of CG s product and prompt delivery. Goods are consistently delivered, in full and on time. As a result, Jane's sales volume for the month has more than doubled compared to the same month in the previous year. Occasionally, Jane receives urgent orders from restaurants and is able to fill them on the same day by transferring products from neighboring areas. The cost of these same-day deliveries tends to be relatively high, but they keep the restaurant customers happy. Campus Gelato Pty Ltd - North Aroa ACC341 - Case Assignment Assignment Part 1 1. Prepare a fexible budget for the month ending 28 February 2019 . 2. Present the sales volume variance and the siles price variance foreach product. 3. Also, present the Direct Materiai variance and Direct Labor variance for each product. Note that atter you hyve set up the fienible budcet you can'see these variances without further calaulations. I recommend you vse the Facel fie "CampusGelato flex Bdg PAAT r. Subinit responses to quetions 1 to 3 on 02 stove by Wednesday April 19stmidnight (You can submit the abovementioned ficel theet is modfed version). I will port solutions Campus Getalo Ptyr Lhd - North Ared
