Required: Calculate the revenue and spending variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Servings Labor-hours Revenue Expenses: Ingredients expense Salaries and wages expense Franchise fee Credit card processing fees Utilities expense Rent expense Equipment depreciation expense Other expenses Total expense Net operating income Actual Results Flexible Variances Budget Annie's Homemade is preparing a planning budget for August. Its budgeted revenue per serving is $5.00. It has identified two cost drivers-number of servings and number of labor-hours. The company expects to sell 10,800 servings and to staff 700 employee labor-hours in August. Data concerning the company's cost formulas are shown below: Fixed Cost Cost per Cost per Per Month Serving Labor-Hour $ 1.25 Ingredients expense Salaries and wages expense Franchise fee Credit card processing fees $ 7,000 $ 8.00 $ 0.25 $ 0.09 Utilities expense $ 300 $ 0.02 Rent expense $ 3,000 Equipment depreciation expense $1,750 Other expenses $ 4,200 In August, the company actually sold 11,200 servings of ice cream and staffed 780 employee labor-hours. It's budgeted revenue per serving is $5.00. Assume Annie's Homemade's actual results for August were as follows: Actual number of servings Actual number of labor-hours 11,200 780 Revenue $ 57,500 Expenses: Cost of ingredients 18,100 Salaries and wages 13,340 Franchise fee 2,800 Credit card processing fees 1,232 Utilities 704 Rent and CAM 3,000 Equipment depreciation 1,750 Other expenses 4,100 Total expenses 45,026 Net operating income $ 12,474
Required: Calculate the revenue and spending variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Servings Labor-hours Revenue Expenses: Ingredients expense Salaries and wages expense Franchise fee Credit card processing fees Utilities expense Rent expense Equipment depreciation expense Other expenses Total expense Net operating income Actual Results Flexible Variances Budget Annie's Homemade is preparing a planning budget for August. Its budgeted revenue per serving is $5.00. It has identified two cost drivers-number of servings and number of labor-hours. The company expects to sell 10,800 servings and to staff 700 employee labor-hours in August. Data concerning the company's cost formulas are shown below: Fixed Cost Cost per Cost per Per Month Serving Labor-Hour $ 1.25 Ingredients expense Salaries and wages expense Franchise fee Credit card processing fees $ 7,000 $ 8.00 $ 0.25 $ 0.09 Utilities expense $ 300 $ 0.02 Rent expense $ 3,000 Equipment depreciation expense $1,750 Other expenses $ 4,200 In August, the company actually sold 11,200 servings of ice cream and staffed 780 employee labor-hours. It's budgeted revenue per serving is $5.00. Assume Annie's Homemade's actual results for August were as follows: Actual number of servings Actual number of labor-hours 11,200 780 Revenue $ 57,500 Expenses: Cost of ingredients 18,100 Salaries and wages 13,340 Franchise fee 2,800 Credit card processing fees 1,232 Utilities 704 Rent and CAM 3,000 Equipment depreciation 1,750 Other expenses 4,100 Total expenses 45,026 Net operating income $ 12,474
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
am. 117.
Transcribed Image Text:Required:
Calculate the revenue and spending variances for August.
Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero
variance). Input all amounts as positive values.
Servings
Labor-hours
Revenue
Expenses:
Ingredients expense
Salaries and wages expense
Franchise fee
Credit card processing fees
Utilities expense
Rent expense
Equipment depreciation expense
Other expenses
Total expense
Net operating income
Actual
Results
Flexible
Variances
Budget
Transcribed Image Text:Annie's Homemade is preparing a planning budget for August. Its budgeted revenue per serving is $5.00. It has identified
two cost drivers-number of servings and number of labor-hours. The company expects to sell 10,800 servings and to staff
700 employee labor-hours in August. Data concerning the company's cost formulas are shown below:
Fixed Cost Cost per Cost per
Per Month Serving Labor-Hour
$ 1.25
Ingredients expense
Salaries and wages expense
Franchise fee
Credit card processing fees
$ 7,000
$ 8.00
$ 0.25
$ 0.09
Utilities expense
$ 300
$ 0.02
Rent expense
$ 3,000
Equipment depreciation expense $1,750
Other expenses
$ 4,200
In August, the company actually sold 11,200 servings of ice cream and staffed 780 employee labor-hours. It's budgeted
revenue per serving is $5.00. Assume Annie's Homemade's actual results for August were as follows:
Actual number of servings
Actual number of labor-hours
11,200
780
Revenue
$ 57,500
Expenses:
Cost of ingredients
18,100
Salaries and wages
13,340
Franchise fee
2,800
Credit card processing fees
1,232
Utilities
704
Rent and CAM
3,000
Equipment depreciation
1,750
Other expenses
4,100
Total expenses
45,026
Net operating income
$ 12,474
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