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Prepare a master budget and analyze variances for a service department. Budgeted Costs Actual Costs Salaries $200,000 Supplies $50,000 Utilities $30,000 Administrative Costs $80,000 Revenue
Prepare a master budget and analyze variances for a service department.
Budgeted Costs | Actual Costs |
Salaries | $200,000 |
Supplies | $50,000 |
Utilities | $30,000 |
Administrative Costs | $80,000 |
Revenue | $400,000 |
Requirements:
Prepare a master budget including revenue and various cost components.
Calculate the budget variance and analyze it for each cost item.
Discuss the implications of budget variances and recommend corrective actions.
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