Question
Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The
Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
| Fixed element per month | Variable element per student | Variable element per course | ||||||||||
| Revenue | $ | 0 | $ | 218 | $ | 0 | ||||||
| Faculty wages | $ | 0 | $ | 0 | $ | 2,940 | ||||||
| Course supplies | $ | 0 | $ | 36 | $ | 24 | ||||||
| Administrative expenses | $ | 25,700 | $ | 11 | $ | 36 | ||||||
In March, the school budgeted for 1,750 students and 72 courses. The school's income statement showing the actual results for the month appears below:
| Roberds Tech | |||
| Income Statement | |||
| For the Month Ended March 31 | |||
| Actual students | 1,650 | ||
| Actual courses | 75 | ||
| Revenue | $ | 331,340 | |
| Expenses: | |||
| Faculty wages | 206,950 | ||
| Course supplies | 54,590 | ||
| Administrative expenses | 47,562 | ||
| Total expense | 309,102 | ||
| Net operating income | $ | 22,238 | |
Required:
Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for March. Label each variance as favorable (F) or unfavorable (U).
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Security Audit And Control Features Oracle E Business Suite
Authors: Deloitte Touche Tohmatsu Research Team And Isaca
3rd Edition
1604201061, 978-1604201062
