We will begin with the company as a whole. (Use parentheses or a minus sign when entering the headquarters' expense and any unfavourable variances.) Pet World Responsibility Accounting Performance Report July Companywide Operating Income of Regions and Headquarters' Office Expense Variance Favourable (Unfavourable) Actual Budget Headquarters' office expense Manitoba Stores in other regions Operating income Now prepare the report that shows the performance of the Manitoba region. (Use parentheses or a minus sign when entering the region manager's expense and any unfavourable variances.) Manitoba Operating Income of Stores and Region Manager's Office Expense Variance Favourable (Unfavourable) Actual Budget Region manager's office expense Winnipeg Other Manitoba stores Operating income Finally, show the performance of the Winnipeg store. (For variances with a zero balance, make sure to enter "0" in the appropriate cell. Use parentheses or a minus sign when entering any unfavourable variances.) Winnipeg Variance Favourable (Unfavourable) Revenues and Expenses: Actual Budget Revenue Expenses: Cost of materials Salary expense Depreciation expense Utilities expense Rent expense Total expenses Operating income Requirement 2. As the Manitoba region manager, would you investigate the Winnipeg store on the basis of this report? Why or why not? (Enter all amounts as positive. Round percentages to two decimal places, X.XX%.) As region manager of the Manitoba region, you is % of its budgeted investigate the Winnipeg office on the basis of this report. Its operating income variance of $, which is V investigating. The company afford to keep operating marginally profitable stores. income. This V difference is Requirement 3. Briefly discuss the benefits of budgeting. Base your discussion on Pet World's performance report. Budgeting plan. The various levels of Pet World's management their operations to develop the detailed budgets in the performance report. from the company headquarters to region managers, and from region managers to Budgeting coordination and communication. The budgets of the performance report communicate store managers and their staff. Budgets also help managers activities across the company's operations. The budget versus actual comparisons in the report are better indicators of than current period actual amounts versus past period actual Budgeting helps managers evaluate amounts. Budgeting also for measuring performance, and if The Winnipeg store, other Manitoba stores, stores in other regions, and the headquarters will be to meet their budgets if budgets are the benchmark accept the budgets as fair. V participation in the budgeting process helps ensure acceptance. More info Actual income statements Winnipeg Manitoba Companywide $ 148,900 $ 1,640,000 $ 4,700,000 Revenue Expenses: Region manager/headquarters office 58,000||$ 115,000 $- $ 81,400 Cost of materials 871,700 38,000 415,900 Salary expense Depreciation expense 1,803,000 1,123,000 434,000 7,300 91,000 Utilities expense 4,400 2,700 46,200 34,600 264,000 175,000 Rent expense 133 8001 1 517 4001 3914000 Utilities expense 4,400 2,700 46,200 34,600 264,000 175,000 Rent expense Total expenses 133,800 1,517,400 3,914,000 $ 15,100||$ 122,600||$ 786,000 Operating income More info Budgeted amounts for July were as follows: Winnipeg $ 163,900||$ Manitoba Companywide 1,768,000|| $ 4,950,000 Revenue Expenses: Region manager/headquarters office $ - $ 63,600||$ 117,000 Cost of materials 86,100 963,400 1,978,000 38,400 441,000 Salary expense Depreciation expense 1,099,000 448,000 Utilities expense 7,300 4,900 3,500 87,700 54,700 32,600 274,000 172,000 Rent expense 140 Annn Anoo non Rent expense 3,500 32,600 172,000 140,200 1,643,000 4,088,000 Total expenses $ CA 23,700||$ 125,000||$ 862,000 Operating income