Winnipeg Variance Favourable Revenues and Expenses: Actual Budget (Unfavourable) 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 investigate the Winnipeg office on the basis of this report. Its operating income variance of $ , which is . is % of its budgeted income. This difference is investigating. The company afford to keep operating marginally profitable stores. Requirement 3. Briefly discuss the benefits of budgeting. Base your discussion on Doggy World's performance report Budgeting plan. The various levels of Doggy World's management their operations to develop the detailed budgets in the performance report. Budgeting coordination and communication. The budgets of the performance report communicate from the company headquarters to region managers, and from region managers to store managers and their staff. Budgets also help managers activities across the company's operations. Budgeting helps managers evaluate . The budget versus actual comparisons in the report are better indicators of than current period actual amounts versus past period actual amounts. Budgeting also V. The Winnipeg store, other Manitoba stores, stores in other regions, and the headquarters will be to meet their budgets if budgets are the benchmark for measuring performance, and if accept the budgets as fair. participation in the budgeting process helps ensure acceptance.X More info Actual income statements Winnipeg Manitoba Companywide 148,500 $ 1,644,000 $ 4,000,000 Revenue Expenses: Region manager/headquarters office $ - 63,000 $ 110,000 Cost of materials 81,200 871,600 1,802,000 Salary expense 38,300 415,500 1, 119,000 Depreciation expense 7,600 95,000 438,000 Utilities expense 4,600 46,400 263,000 2,700 34,400 175,000 Rent expense 134,400 1,525,900 3,907,000 Total expenses 14,100 118, 100 93,000 Operating income Print DoneX More info Budgeted amounts for July were as follows: Winnipeg Manitoba Companywide Revenue $ 163,000 1,769,000 4,250,000 Expenses: Region manager/headquarters office $ - 68,600 $ 112,000 Cost of materials 86,200 963,900 1,978,000 Salary expense 38,800 443,500 1,092,000 Depreciation expense 7,600 87,700 446,000 Utilities expense 4,800 54,600 275,000 Rent expense 3,700 32,600 174,000 Total expenses 141,100 1,650,900 4,077,000 21,900 $ 118, 100 173,000 Operating income Print DoneDoggy World operates a chain of pet stores in the Prairies. The manager of each store reports to the regional manager, who, in turn, reports to headquarters in Regina. The actual income statements for the Winnipeg store, the Manitoba region (including the Winnipeg store), and the company as a whole (including the Manitoba region) for July are as follows: i (Click the icon to view the actual income statements.) i (Click the icon to view the budgeted income statements.) Requirements 1. Prepare a report for July that shows the performance of the Winnipeg store, the Manitoba region, and the company as a whole. 2. As the Manitoba region manager, would you investigate the Winnipeg store on the basis of this report? Why or why not? 3. Briefly discuss the benefits of budgeting. Base your discussion on Doggy World's performance report. Requirement 1. Prepare a report that shows the performance of the Winnipeg store, the Manitoba region and the company as a whole. We will begin with the company as a whole. (Use parentheses or a minus sign when entering the headquarters' expense and any unfavourable variances.) Doggy World Responsibility Accounting Performance Report July Companywide Variance Operating Income of Regions and Favourable Headquarters' Office Expense Actual Budget (Unfavourable) 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 Variance Operating Income of Stores and Favourable Region Manager's Office Expense Actual Budget (Unfavourable) 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.)