%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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F85e39e9b-3b6a-4fb6-8406-b63a567ff03b%2F882a4531-c3ad-478d-8d7e-19eabc9a188e%2F90fr1ka.jpeg&w=3840&q=75)
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
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?
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