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:
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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
Puppy
World's performance report.
- More info Actual income statements Winnipeg $ 148,600||$ Manitoba Companywide 1,641,000 $ 4,700,000 Revenue Expenses: Region manager/headquarters office $ $ 63,000 $ 116,000 Cost of materials 81,200 871,200 1,800,000 38,100 415,900 1,118,000 Salary expense Depreciation expense 7,400 95,000 438,000 Utilities expense 4,500 2,300 46,400 34,600 260,000 178,000 Rent expense Total expenses 133,500 1,526,100 3,910,000 $ 15,100 $ 114,900 $ 790,000 Operating income Print Done The manager of each store reports to the regional manager, who, in turn, reports to headquarters in Regina. The actual incom eing s.) More info - he w he W ussio Budgeted amounts for July were as follows: Winnipeg 162,100 $ Manitoba Companywide 1,770,000 $ 4,950,000 $ Revenue ses Expenses: Region manager/headquarters office $ $ 68,600 $ 118,000 forn Cost of materials 86,600 1,972,000 38,200 Salary expense Depreciation expense 963,900 441,000 87,300 54,500 32,300 1,095,000 447,000 7,400 Utilities expense 4,900 4,000 274,000 172,000 Rent expense Total expenses 141,100 1,647,600 4,078,000 $ 21,000 $ 122,400 $ 872,000 Operating income Vanit abl Print Done Favourable 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.) Puppy World Responsibility Accounting Performance Report July Companywide Varlance Operating Income of Regions and Favourable Headquarters' Office Expense Actual (Unfavourable) Headquarters' office expense Manitoba Budget 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 Time Remaining: 01:52:50 Next 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 Favourable (Unfavourable) Actual Budget Operating Income of Stores and Region Manager's Office Expense 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 Revenues and Expenses: Actual Budget (Unfavourable) Revenue Expenses: Cost of materials Salary expense Time Remaining: 01:52:34 Next 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 investigate the Winnipeg office on the basis of this report. Its operating income variance of which is , is % of its budgeted income. This investigating. The company afford to keep operating marginally profitable stores. Requirement 3. Brielly discuss the benefits of budgeting. Base your discussion on Puppy World's performance report y difference is Time Remaining: 01:52:02 Next 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 which is is % of its budgeted income. This difference investigate the Winnipeg office on the basis of this report. Its operating income variance of $ afford to keep operating marginally profitable stores. is investigating. The company Requirement 3. Briefly discuss the benefits of budgeting. Base your discussion on Puppy World's performance report. Budgeting plan. The various levels of Puppy 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 store managers and their staff. Budgeting coordination and communication. The budgets of the performance report communicate 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 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. 0 Time Remaining: 01:51:46 Next
