Question
The Whitehouse Indian tribe sells fireworks for the 5 weeks preceding July 4. The tribe's stand on Highway 101 near Hoodsport had budgeted sales of
The Whitehouse Indian tribe sells fireworks for the 5 weeks preceding July 4. The tribe's stand on Highway 101 near Hoodsport had budgeted sales of $ 74 comma 000. Expected expenses were as follows: LOADING...(Click the icon to view the budget data.) Actual sales were $ 73 comma 500, almost equal to the budget. The tribe spent $ 33 comma 600 for fireworks, $ 20 comma 000 for labor, and $ 8 comma 920 for other costs. Requirements 1. Compute budgeted profit and actual profit. 2. Prepare a performance report to help identify those costs that were significantly different from the budget. 3. Suppose the tribe uses a management-by-exception rule. What costs deserve further explanation? Why?
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