Perfect Parties, Inc. has several divisions. One division provides birthday parties at their facility. Each party sold provides entertainment, decorations, food, and party favors for 10 children. The bookkeeper has prepared a report comparing actual results for the month of June to budgeted results. Perfect Parties Birthday Party Division Analysis of Revenues and Costs For the Month Ended June 30 Planning Actual Budget Results Variances Number of parties 80 92 Revenue $36,000 $39,560 $3,560 F Expenses: Food costs 7,200 8,648 1,448 U Party supplies 3,200 3,404 204 U Party worker wages 6,400 7,728 1,328 U Administrative salaries 3,700 3,500 200 F Equipment depreciation 1,200 1,200 0 None Rent 5,000 5,000 0 None Total expense 26,700 29,480 2,780 U Net operating income $9,300 $10,080 $780 F Food costs, party supplies, and party worker wages are variable costs. Administrative salaries, equipment depreciation, and rent are fixed costs. Required: Prepare a new report for June using the flexible budget approach. Enter all variances as positive amounts. Leave no cells blank. (Use cells A10 to E20 from the given information, as well as A34 to H44 to complete this question.) Number of parties Revenues Expenses: Food costs Party supplies Party worker wages Administrative salaries Equipment depreciation Rent Total expense Net operating income Perfect Parties Birthday Party Division Flexible Budget Performance Report For the Month Ended June 30 Planning Budget Activity Variances Flexible Budget Revenue and Spending Actual Variances Results
Perfect Parties, Inc. has several divisions. One division provides birthday parties at their facility. Each party sold provides entertainment, decorations, food, and party favors for 10 children. The bookkeeper has prepared a report comparing actual results for the month of June to budgeted results. Perfect Parties Birthday Party Division Analysis of Revenues and Costs For the Month Ended June 30 Planning Actual Budget Results Variances Number of parties 80 92 Revenue $36,000 $39,560 $3,560 F Expenses: Food costs 7,200 8,648 1,448 U Party supplies 3,200 3,404 204 U Party worker wages 6,400 7,728 1,328 U Administrative salaries 3,700 3,500 200 F Equipment depreciation 1,200 1,200 0 None Rent 5,000 5,000 0 None Total expense 26,700 29,480 2,780 U Net operating income $9,300 $10,080 $780 F Food costs, party supplies, and party worker wages are variable costs. Administrative salaries, equipment depreciation, and rent are fixed costs. Required: Prepare a new report for June using the flexible budget approach. Enter all variances as positive amounts. Leave no cells blank. (Use cells A10 to E20 from the given information, as well as A34 to H44 to complete this question.) Number of parties Revenues Expenses: Food costs Party supplies Party worker wages Administrative salaries Equipment depreciation Rent Total expense Net operating income Perfect Parties Birthday Party Division Flexible Budget Performance Report For the Month Ended June 30 Planning Budget Activity Variances Flexible Budget Revenue and Spending Actual Variances Results
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Perfect Parties, Inc. has several divisions, one of which provides birthday parties at their facility, and has provided the actual and planning budget results for the month of June. The Controller has asked you prepare the Birthday Party Division Budget Performance Report.
Please provide me with the FORMULAS needed for each yellow cell. for ex: the planning budget for the number of parties would be =b10 which would then make the answer 80. thank you
Transcribed Image Text:Perfect Parties, Inc. has several divisions. One division provides birthday parties at their facility.
Each party sold provides entertainment, decorations, food, and party favors for 10 children.
The bookkeeper has prepared a report comparing actual results for the month of June to budgeted results.
Perfect Parties
Birthday Party Division Analysis of Revenues and Costs
For the Month Ended June 30
Planning
Actual
Budget
Results
Variances
Number of parties
80
92
Revenue
$36,000
$39,560
$3,560 F
Expenses:
Food costs
7,200
8,648
1,448 U
Party supplies
3,200
3,404
204 U
Party worker wages
6,400
7,728
1,328 U
Administrative salaries
3,700
3,500
200 F
Equipment depreciation
1,200
1,200
0 None
Rent
5,000
5,000
0 None
Total expense
26,700
29,480
2,780 U
Net operating income
$9,300
$10,080
$780 F
Food costs, party supplies, and party worker wages are variable costs.
Administrative salaries, equipment depreciation, and rent are fixed costs.
Required:
Prepare a new report for June using the flexible budget approach.
Enter all variances as positive amounts. Leave no cells blank.
(Use cells A10 to E20 from the given information, as well as A34 to H44 to complete this question.)
Number of parties
Revenues
Expenses:
Food costs
Party supplies
Party worker wages
Administrative salaries
Equipment depreciation
Rent
Total expense
Net operating income
Perfect Parties
Birthday Party Division Flexible Budget Performance Report
For the Month Ended June 30
Planning
Budget
Activity
Variances
Flexible
Budget
Revenue and Spending
Actual
Variances
Results
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education