Requirements 1 and 2. Compute budgeted profit and actual profit. Prepare a performance report to help identify those costs that were significantly different from the budget.

Start first by computing the budgeted profit and actual profit by filling in the first portion of the performance report.? Next, complete the performance report by calculating the variances. ?(Label each variance as favorable? (F) or unfavorable? (U).)

	Budget	Actual
Sales	$78,000	$77,700
Costs:
Fireworks	39,000	38,500
Labor	15,000	18,100
Other	6,000	5,900
Total cost	60,000	62,500
Profit	$18,000	$15,200

Variance
$300	U
500	F
3,100	U
100	F
2,500	U
$2,800	U

Requirement 3. Suppose the tribe uses a? management-by-exception rule. What costs deserve further? explanation? Why? ?(Round the percentages to the nearest tenth? percent, X.X%.)

The cost of fireworks was nothing?%

under

budget and sales was

0.40.4?%

under

?budget; therefore, we

?

do not need to

should

look into the fireworks cost for an explanation.