This is the question Plz plz help

Task 1: Prepare a budget

Based on the information below, prepare an operating budget.

The sales budget is to be based on the anticipated volumes of business activity indicated by the figures in the table below:

The cost budget is to be based on the following information:

COGS in each month are estimated to be 30% of the total revenue. The managers reviewed staff rosters and decided to reduce the number of staff on duty in order to cut down on wages. The new target for the total labour expense in each month has now been set to 25% of the respective month revenue, and there will be incentives for managers responsible for rostering to meet this KPI. According to the current contract (which is due for renewal in April), the rent is $9,900 per month. The forecasted expense associated with advertising activities is $4,000 per month plus 1% of the given month revenue. Utility bills: The electricity invoice for the last quarter was $7,500 and therefore the expense associated with electricity is estimated to be $2,500 per month. The gas bill is budgeted to be $800 per month. The current contract for telephone service bundled with the EFTPOS facility is $390 per month The use of chemicals (cleaning detergents and sanitisers) slightly reflects the volume of business activity and so the expense associated with the chemicals is expected to be $1500 per month + 1% of the given month revenue. The anticipated cost of linen (cleaning & hire) is $2000 per month plus 2% of the particular month revenue. Interest payable is forecasted at $5,000 per month for the entire period. The forecasted tax liability is to be based on the current company tax rate as stipulated by the ATO.

Task 2: Conduct budget variance analysis

The table below indicates the actual income and expenditure figures obtained at the end of the 6-month period. Calculate the budget variances that have occurred between the actual and forecasted figures for each item during the 6-month period. Indicate whether the variances are favourable or adverse.

May Breakfast No of Guests / Day AVG $ spent per Guest No of Guests / Day AVG $ spent per Guest No of Guests / Day AVG $ spent per Guest Days in month January February Budget Budget 30 30 20 20 50 50 30 45 45 40 40 31 28 March Budget 30 20 50 30 45 40 31 April Budget 30 20 50 30 45 40 30 Lunch June Budget 30 20 50 30 45 40 30 Budget 30 20 50 30 45 40 31 30 Dinner ("Note: All monthly revenues and expenses are to be calculated factoring in the number of days in each month.) May Actual June Actual Statement of operation for the 6-month period ending 30 June 2021 January February March April Actual Actual Actual Actual Revenue Breakfast 22.444 19,096 23,529 24,480 Lunch 59,675 52,360 55.242 48,000 Dinner 58,590 49,392 50,840 43,320 Total COGS 39,416 31,420 40,179 39,372 Total Payroll 39,416 31,420 40,179 39,372 Other Operating Expenses Rent of Premises 9,900 9,900 9,900 10,890 Advertising 6,300 4,500 4,000 4,000 Electricity 2,370 2,370 2,370 2,511 Gas 911 911 911 812 Telephone 390 390 390 390 Chemicals 3,007 2,858 3,016 2.958 Linen Cleaning and Hire 4,665 4,486 4,682 4,416 Bank interest 5,000 5,000 5.000 6,500 26,784 43,245 43,524 43,524 43,150 27,360 36,000 36,750 34,037 34,037 10,690 3,500 2,511 812 390 12.935 4,421 6,500 10,890 3,500 2,511 812 390 2,901 4,202 6,500 *Note: In order to calculate budget variance for some line items (e.g. Revenue) - you only need to compare nominal values of the Budgeted and Actual figures on a horizontal basis; however for certain items (e.g. COGS, Gross Profit or Labour Cost) you will need to convert the nominal values of the Budgeted and Actual figures into margins on a vertical basis first, and then determine the variance by comparing the respective margins in order for the comparison to be meaningful