What is the flex budget variance for operating income?

What is the volume variance for operating income?

What do the flex budget variance and volume variance for operating income sum to?

Does this equal the total master budget variance Yes or No?

Should it always sum (or net) to the total master budget variance, even if one is U and one is F? Yes or No?

How much of the master budget variance for Sales was caused by an UNANTICIPATED increase in volume?

How much of the master budget variance for Commission Expense was caused by an UNANTICIPATED increase in volume?

How much of the master budget variance for Advertising Expense was caused by an UNANTICIPATED increase in volume?

How much of the master budget variance for CGS was caused by some factor OTHER THAN volume?

What could account for this variance?

How much of the master budget variance for Sales Revenue was caused by some factor OTHER THAN volume?

What could account for this variance?

How much of the master budget variance for Advertising Expense was caused by some factor OTHER THAN volume?

What could account for this variance?

Budgets have been completed, just need the analysis complete.

Budget assumptions: Volume Sales Revenue 20,000 cases 50.00 per case $ Percent sold on credit 90% percent of sales Variable Expenses: CGS Sales Commission Shipping Expense Bad Debt Expense $ $ $ 30.00 per case 2.50 per case 2.00 per case 1.00% percent of credit sales Fixed Monthly Expenses: Salaries Lease on Distribution center Depreciation on fleet & Equip Advertising Office rent, phone, internet $ $ $ $ $ 40,000 17,000 12,000 10,000 11,000 Management by exception 15% Investigation rule Kelsey's Frozen Confectionaries Master Budget Performance Report For the month ended June 30 For U Investigate? ACTUAL MASTER BUDGET 21,460 20,000 VARIANCE 1,460 VAR. % 7.3% Volume (in cases) F $ 1,131,020 $ 1,000,000.00 $ 131,020.00 13.1% F U $ $ $ U 682,880 $ 58,685 $ 44,213 $ 16,930 $ 328,312 $ 600,000.00 $ 50,000.00 $ 40,000.00 $ 9,000 $ 301,000.00 $ 82,880.00 8,685.00 4,213.00 7,930 27,312.00 13.8% 17.4% 10.5% 88.1% 9.1% U U $ $ U Sales Revenue Less Variable Expenses: Cost of Goods Sold Sales Commissions Shipping Expense Bad debt expense Contribution Margin Less Fixed Expenses: Salaries Lease on Distn center Deprec. on fleet/equip Advertising Office rent, phone, net Operating Income $ U 3,000 (1,500) F $ $ $ F 43,000 $ 15,500 $ 12,000 $ 7,750 $ 12,300 $ 237,762 $ 40,000 $ 17,000 $ 12,000 $ 10,000 $ 11,000 $ 211,000 $ 7.5% -8.8% 0.0% -22.5% 11.8% 12.7% $ $ (2,250) 1,300 26,762 c| Kelsey's Frozen Confectionaries Fexible Budget Performance Report For the month ended June 30 ACTUAL 21,460 FLEXIBLE BUDGET 21,460 MASTER BUDGET $ 20,000.00 Volume (in cases) 1,131,020 $ 1,073,000.00 $ 1,000,000.00 682,880 58,685 44,213 16,930 328,312 $ $ $ $ $ 643,800.00 53,650.00 42,920.00 9,657.00 322,973.00 $ 600,000.00 $ 50,000.00 $ 40,000.00 $ 9,000.00 $ 301,000.00 $ Sales Revenue Less Variable Expenses: Cost of Goods Sold Sales Commissions Shipping Expense Bad debt expense Contribution Margin Less Fixed Expenses: Salaries Lease on Distn center Deprec. on fleet/equip Advertising Office rent, phone, net Operating Income + 43,000 15,500 12,000 7,750 12,300 237,762 $ $ $ $ $ $ 40,000 17,000 12,000 10,000 11,000 232,973.00 $ 40,000.00 $ 17,000.00 $ 12,000.00 $ 10,000.00 $ 11,000.00 $ 211,000.00 Dollar amount For U Yes or No Answer the following questions (dollar amount; For U?; Reason, when asked) What is the flex budget variance for operating income? What is the volume variance for operating income? What do the flex budget variance and volume variance for operating income sum to? Does this equal the total master budget variance Yes or No? Should it always sum (or net) to the total master budget variance, even if one is U and one is F? Yes or No? How much of the master budget variance for Sales was caused by an UNANTICIPATED increase in volume? How much of the master budget variance for Commission Expense was caused by an UNANTICIPATED increase in volume? How much of the master budget variance for Advertising Expense was caused by an UNANTICIPATED increase in volume? How much of the master budget variance for CGS was caused by some factor OTHER THAN volume? Possible reason What could account for this variance? How much of the master budget variance for Sales Revenue was caused by some factor OTHER THAN volume? What could account for this variance? How much of the master budget variance for Advertising Expense was caused by some factor OTHER THAN volume? What could account for this variance? Income Statement line item Consistent Inconsistent Unexplained All sales volume variances Flexible budget variances: Sales Revenue Cost of Goods sold Commission expense Shipping Expenses Bad debt expense Salaries expense Lease of distribution center Depreciation of fleet & Equip. Advertising expense Ofice rent, phone, internet