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The Controller has asked you to complete the following tasks: 1 Allocate the annual budget, on a quarterly basis, over the year, given the information
The Controller has asked you to complete the following tasks: | |||||||
1 | Allocate the annual budget, on a quarterly basis, over the year, given the | ||||||
information below: | |||||||
(a) | Sales - 30% of sales occur in December. The balance of sales occur equally | ||||||
over the remaining 11 months | |||||||
(b) | Rental income is earned equally over the year | ||||||
(c) | 25% of grants and donations are received in March, June, Sept and Dec | ||||||
(d) | User fees are earned in June and July - 25% in June and 75% in July | ||||||
(e) | Miscellaneous revenue is earned completely in December | ||||||
(f) | Salaries are paid equally over the year | ||||||
(g) | Wages allow the company to hire 4 summer students over the | ||||||
months of May to August (an equal amount is spent each month | |||||||
during that period) | |||||||
(h) | Benefits expense is 10.34% of monthly budgeted salaries | ||||||
(i) | Monthly materials expense in incurred in the same proportion as sales [see (a)] | ||||||
(j) | Contracted services are incurred equally in August and September | ||||||
(k) | Utilities, rent and insurance expenses are incurred equally in each month | ||||||
(l) | 50% of advertising expenses are incurred in Nov and Dec. The remaining | ||||||
50% is spent equally over the balance of the year. | |||||||
(m) | Travel expenses are incurred 50% in May and 50% in October | ||||||
(n) | The years total supplies are purchased in January | ||||||
NOTE: | Total budget allocations must agree with the total 2020 budget provided. Any | ||||||
required rounding should be done in the last quarter allocation. | |||||||
2 | Prepare a "Budget Variance Report" as of March 31, 2020. Provide possible | ||||||
explanations for any variances in excess of $5,000 as of March 31, 2020. Note: Can Someone answer these questions please I am posting 4th times |
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