Question

Variance analysis reports can be prepared to examine the difference between budgeted and actual figures for:

Production in terms of cost, quantity and quality
Sales
Profit
Income per sales dollar
Growth rate

Required:
Complete the following variance analysis report.

Variance Analysis Report Actual Budget Variances
REVENUE 320,000 318,750
Direct Expense (variable) 101,000 100,000
Allocated general expenses (fixed) 78,000 80,000
Allocated service expenses:
Department 1 20,500 20,000
Department 2 65,000 62,500
Department 3 101,500 100,000
TOTAL EXPENSES
NET INCOME

Answer 1

Following are the responses to the given question:

Step-by-step explanation:

Report on varying analyses Current Fiscal Variations

Income 320000 318750 -1250

Direct expenditure (variable) 101000 100000 -1000

General expenditure allocated (fixed) 78000 80000 2000

Operation costs allocated:

Section 1 20500 20000 -500

Section 2 65000 62500 -2500

Section 3 101500 100000 -1500

Total expenses 366000 362500 -3500

Total Income - 46000 -43750 -2250