Homework Help is Here – Start Your Trial Now!
Business
Accounting
%24 380 F 2,200 %24 800 Is the above variance report useful for evaluating how well revenues and costs were controlled dur- $1,400 F 100 1,150 ing April? Why, or why not? 2,550 EXERCISE 9-7 Critique a Variance Report [LO9-6] Refer to the data for The Terminator Inc. in Exercise 9-6. A management intern has suggested that the budgeted revenues and costs should be adjusted for the actual level of activity in April before they are compared to the actual revenues and costs. Because the actual level of activity was 5% higher than budgeted, the intern suggested that all budgeted revenues and costs should be adjusted upward by 5%. A report comparing the budgeted revenues and costs, with this adjustment, to the actual revenues and costs appears below. 350 290 ,440 560 s for The Terminator Inc. Variance Report For the Month Ended April 30 Adjusted Planning Budget Actual Results Variances Jobs . . .. 105 105 $20,520 $20,475 $ 45 F t Revenue ... Expenses: Mobile team operating costs .... Exterminating supplies .. .. Advertising .... Dispatching costs ... Office rent ... 180 F 10,320 960 10,500 1,890 840 930 F 40 F 800 30 U 2,340 1,800 2,100 2,310 1,890 2,205 90 F go 105 F Insurance 19,635 1,315 F 18,320 24 $ 840 $1,360 F Total expense $ 2,200 Net operating income Chapter 9 Required: Is the above variance report useful for evaluating how well revenues and costs were controlled dur- ing April? Why, or why not?

%24 380 F 2,200 %24 800 Is the above variance report useful for evaluating how well revenues and costs were controlled dur- $1,400 F 100 1,150 ing April? Why, or why not? 2,550 EXERCISE 9-7 Critique a Variance Report [LO9-6] Refer to the data for The Terminator Inc. in Exercise 9-6. A management intern has suggested that the budgeted revenues and costs should be adjusted for the actual level of activity in April before they are compared to the actual revenues and costs. Because the actual level of activity was 5% higher than budgeted, the intern suggested that all budgeted revenues and costs should be adjusted upward by 5%. A report comparing the budgeted revenues and costs, with this adjustment, to the actual revenues and costs appears below. 350 290 ,440 560 s for The Terminator Inc. Variance Report For the Month Ended April 30 Adjusted Planning Budget Actual Results Variances Jobs . . .. 105 105 $20,520 $20,475 $ 45 F t Revenue ... Expenses: Mobile team operating costs .... Exterminating supplies .. .. Advertising .... Dispatching costs ... Office rent ... 180 F 10,320 960 10,500 1,890 840 930 F 40 F 800 30 U 2,340 1,800 2,100 2,310 1,890 2,205 90 F go 105 F Insurance 19,635 1,315 F 18,320 24 $ 840 $1,360 F Total expense $ 2,200 Net operating income Chapter 9 Required: Is the above variance report useful for evaluating how well revenues and costs were controlled dur- ing April? Why, or why not?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

9-7

%24 380 F 2,200 %24 800 Is the above variance report useful for evaluating how well revenues and costs were controlled dur- $1,400 F 100 1,150 ing April? Why, or why not? 2,550 EXERCISE 9-7 Critique a Variance Report [LO9-6] Refer to the data for The Terminator Inc. in Exercise 9-6. A management intern has suggested that the budgeted revenues and costs should be adjusted for the actual level of activity in April before they are compared to the actual revenues and costs. Because the actual level of activity was 5% higher than budgeted, the intern suggested that all budgeted revenues and costs should be adjusted upward by 5%. A report comparing the budgeted revenues and costs, with this adjustment, to the actual revenues and costs appears below. 350 290 ,440 560 s for The Terminator Inc. Variance Report For the Month Ended April 30 Adjusted Planning Budget Actual Results Variances Jobs . . .. 105 105 $20,520 $20,475 $ 45 F t Revenue ... Expenses: Mobile team operating costs .... Exterminating supplies .. .. Advertising .... Dispatching costs ... Office rent ... 180 F 10,320 960 10,500 1,890 840 930 F 40 F 800 30 U 2,340 1,800 2,100 2,310 1,890 2,205 90 F go 105 F Insurance 19,635 1,315 F 18,320 24 $ 840 $1,360 F Total expense $ 2,200 Net operating income
Transcribed Image Text:%24 380 F 2,200 %24 800 Is the above variance report useful for evaluating how well revenues and costs were controlled dur- $1,400 F 100 1,150 ing April? Why, or why not? 2,550 EXERCISE 9-7 Critique a Variance Report [LO9-6] Refer to the data for The Terminator Inc. in Exercise 9-6. A management intern has suggested that the budgeted revenues and costs should be adjusted for the actual level of activity in April before they are compared to the actual revenues and costs. Because the actual level of activity was 5% higher than budgeted, the intern suggested that all budgeted revenues and costs should be adjusted upward by 5%. A report comparing the budgeted revenues and costs, with this adjustment, to the actual revenues and costs appears below. 350 290 ,440 560 s for The Terminator Inc. Variance Report For the Month Ended April 30 Adjusted Planning Budget Actual Results Variances Jobs . . .. 105 105 $20,520 $20,475 $ 45 F t Revenue ... Expenses: Mobile team operating costs .... Exterminating supplies .. .. Advertising .... Dispatching costs ... Office rent ... 180 F 10,320 960 10,500 1,890 840 930 F 40 F 800 30 U 2,340 1,800 2,100 2,310 1,890 2,205 90 F go 105 F Insurance 19,635 1,315 F 18,320 24 $ 840 $1,360 F Total expense $ 2,200 Net operating income
Chapter 9 Required: Is the above variance report useful for evaluating how well revenues and costs were controlled dur- ing April? Why, or why not?
Transcribed Image Text:Chapter 9 Required: Is the above variance report useful for evaluating how well revenues and costs were controlled dur- ing April? Why, or why not?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS