Task 3 - Performance reporting

Qwerty Ltd has provided the following information for January:

	Actual	Budget
Sales	8000	8800
Cost of Sales	5200	60% of budgeted sales
Marketing expenses	1000	15% of budgeted sales
Administration expenses	600	500
Finance Expenses	200	300

a) Prepare a Variance Analysis Report in the format supplied below based on the information supplied above. Percentage variance are to be calculated to two decimal places.

	Budget	Actual	Variance $	Variance %	F or U/F
Sales
Cost of sales
Gross profit
Operating Expenses:
Marketing Expenses
Administration Expenses
Finance Expenses
Total Expenses
Net Profit

b) Provide a brief written report to management discussing the business performance this month.