Questions 2-5 please.

Manngerinl Accounting Projects Flexible Budgets and Variance Analysis Assignment-OULSTIONS 1-3 BASED OFF IST LUCTURE Instructions: Please embed your answers inside the document after cach question. If you are LILSLLe about something, feel free to cnail me for guidance. 1. Cicato a flexible budect for PBW using the actual levels of activity provided above. 2 For each budgeted revenue and expose item, calculate the master budget. volume and lexible bructurel variances. Label ench variance verile and unfavorable. Are any of the viviances calculated in part 2 cause for concenu? List the variances that you think are material, and provide one possible explanatiuris fur why you think ticne various occurred. You do not need to provide explications for innaterial variances, but at least some of the variances should be material. PRV was able to track the actual mount. in curice, ul ech beverage uscil. Based on the standard amounts provided above, and the actual amounts provided below, calculate the price and volume variante of each type of hevenge that PW serves. Um standard costing from beginning of video, UISL SLIDE 9-11 CALCULATIONS Philly Bar Works (PBW) is a catering company located in Philadelphia. Every year from May through September, they operate a beer garden at Sprice Street llarbor Park Dear Peni's Lunding PBW pays for all expenses of operating the beer garden as well as reat to the Harbor Park. Their operating expenses include equipment rental, temporary liquor and business liceoses, and insurance. They also have a number of small miscellaneous expertises that are typically not classified and are thought to be immaterial as individual expenses, I'W eller four types of alcoholic beverages: domestic beer, premium heer, wine, il mixed drinks and liquor. PBW's planning budget and actual results for 2016 are presented in the I'ISWxlxs file. I'NW's planing budget includes estimated prices id volumes (aly), while the actuals providk actual volumes. D:Finitions of selected revenue and expcrise ileirs are listed beluw. Iterus not listed are thought to be self-explanatory Additionnd Definitions Dumestie Beer: 16-uurice serving of domestic beer. The list of domestic beers is stable and includes a regular and light version of a single domestic brand. Prerniuni Beer: 16-vune Nerving of premium beer. Beers are chuse la nitating list, and while cost for the types of beer may vary. the estimated average cost per serving is estimated to be $1.50. Wine: 5-ounce serving of house wine chosen by 'WW. The list includes two rexi and two white varictals. Cost for the types of wine may vary, but average costs are expected to be $2 per serving. Mixed Drinks und Ligur-unce serving of liquor that cio either be served on its own, over ice or curribined with a mixer. Types of liquor served inclulle urnebrarul esch of whiskey, Scolch whiskey. vodka. rum, tequila, sad gin. Regardless of whetber the customer orders a mixed drink avr liquur hy itself, the average xxl bench serving is estimated to healerul $2.5. Lilian hourly employees hireito tend the har, The beer garden is opened from 5 to 1M DD Monday Friday ariel run to 10PM on Saturday and Suray: 2,025 hours are estimated to be needed it an average wage of S12 per hour. The estimated working hours includes tine to set up anul close con the beer garden, indi is based on the issumption thal in ilventye oliwu preple will work the beer garden at any given time. E.yuipment Rental: an expense paid runthly and cursisting primarily of cusl issuciated with renting tap and refrigeration systems. Beverage Dorucstic Beer Premium Beer Winc Mixed Drinks and Liquor Actual Ounces Used 134,710 76,485 47,477 16.10. 5 Based on the material variances that you found (jo pirt 3 and 4), provide some advice to PRV on low to reduce cich unlivorable varilce ind possibly licke aulvan lage of favorable vacance. Revenue: Domestic Beer Premium Beer Wine Mixed Drinks and Liqour Total Revenue Qty 7,500 5,000 6,500 6,000 Master Budget Price/Cost Total 6 $45,000.00 8 $40,000.00 8 $ 52,000.00 9 $54,000.00 Actual Results Qty Total 8,330 $46,980.00 4,725 $37,800.00 6,800 $54,400.00 6,150 $55,350.00 $194,530.00 $191,000.00 Expenses: Domestic Beer Premium Beer Wine Mixed Drinks and Liqour Labor Equipment Rental Rent to Harbor Park Temporary Liqour License Temporary Business License Insurance Misc. Expenses Total Expenses Operating Profit 7,500 5,000 6,500 6,000 2,025 hours 5 months 5 months fixed fixed 5 months fixed 1 $ 7,500.00 1.5 $ 7,500.00 2 $13,000.00 2.5 $15,000.00 12 $24,300.00 1200 $ 6,000.00 6500 $32,500.00 $12,500.00 $ 5,000.00 600 $ 3,000.00 $13,000.00 8,330 $ 7,830.00 4,725 $ 7,887.50 6,800 $15,430.00 6,150 $18,525.00 2,000 hours $21,220.00 5 months $ 6,755.00 5 months $33,175.00 fixed $15,000.00 fixed $ 4,825.00 5 months $ 2,750.00 fixed $12,465.00 $139,300.00 $ 51,700.00 $145,862.50 $ 48,667.50