Required: 1. (a) What is the master budget variance for August 2022? (b) What is the total flexible budget variance for the month? (c) What is the sales volume variance for the month? 2. Determine the professional labor rate and labor efficiency variances for August 2022.
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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- Required information [The following information applies to the questions displayed below.] Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month's rent for this service. For August 2022, Phoenix expects to find rerters for 100 apartments with an average first month's rent of $760. Budgeted cost data per tenant application for 2022 follow: Professional labor: 2.0 hours at $15.00 per hour . . Credit checks: $53.00 Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $3,600 per month. On average, Phoenix is successful in placing one tenant for every three applicants. Actual rental applications in August 2022 were 270. Phoenix paid $9,300 for 480 hours of professional labor. Credit checks went up to $58 per application. Other costs in August 2022 (lease, secretarial help. and utilities) were $3.900. The average first monthly rentals for August 2022 were $860 per apartment…Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month's rent for this service. For August 2022, Phoenix expects to find renters for 100 apartments with an average first month's rent of $1,020. Budgeted cost data per tenant application for 2022 follow: ⚫ Professional labor: 1.5 hours at $20.00 per hour ⚫ Credit checks: $66.00 Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $4,600 per month. On average, Phoenix is successful in placing one tenant for every three applicants. Actual rental applications in August 2022 were 270. Phoenix paid $8,400 for 380 hours of professional labor. Credit checks went up to $71 per application. Other costs in August 2022 (lease, secretarial help, and utilities) were $5,200. The average first monthly rentals for August 2022 were $1,120 per apartment unit for 90 units. Required: 1. (a) What is the master budget variance for August 2022?…[The following information applies to the questions displayed below.] Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month's rent for this service. For August 2022, Phoenix expects to find renters for 100 apartments with an average first month's rent of $700. Budgeted cost data per tenant application for 2022 follow: Professional labor: 1.5 hours at $20.00 per hour Credit checks: $50.00 Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $3,000 per month. On average, Phoenix is successful in placing one tenant for every three applicants. Actual rental applications in August 2022 were 270. Phoenix paid $9,500 for 400 hours of professional labor. Credit checks went up to $55 per application. Other costs in August 2022 (lease, secretarial help, and utilities) were $3,600. The average first monthly rentals for August 2022 were $800 per apartment unit for 90 units.…
- Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month’s rent for this service. For August 2022, Phoenix expects to find renters for 100 apartments with an average first month’s rent of $960. Budgeted cost data per tenant application for 2022 follow: Professional labor: 1.5 hours at $20.00 per hour Credit checks: $64.00 Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $4,400 per month. On average, Phoenix is successful in placing one tenant for every three applicants. Actual rental applications in August 2022 were 270. Phoenix paid $8,500 for 390 hours of professional labor. Credit checks went up to $69 per application. Other costs in August 2022 (lease, secretarial help, and utilities) were $5,000. The average first monthly rentals for August 2022 were $1,080 per apartment unit for 90 units. Required: 1. (a) What is the master budget variance for…Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month’s rent for this service. For August 2022, Phoenix expects to find renters for 100 apartments with an average first month’s rent of $700. Budgeted cost data per tenant application for 2022 follow: Professional labor: 1.5 hours at $20.00 per hour Credit checks: $50.00 Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $3,000 per month. On average, Phoenix is successful in placing one tenant for every three applicants. Actual rental applications in August 2022 were 270. Phoenix paid $9,500 for 400 hours of professional labor. Credit checks went up to $55 per application. Other costs in August 2022 (lease, secretarial help, and utilities) were $3,600. The average first monthly rentals for August 2022 were $800 per apartment unit for 90 units. Part 1 (Static) Required: 1. (a) What is the master budget variance…Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month’s rent for this service. For August 2019, Phoenix expects to find renters for 100 apartments with an average first month’s rent of $820. Budgeted cost data per tenant application for 2019 follow: Professional labor: 1.5 hours at $20.00 per hour Credit checks: $56.00 Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $3,600 per month. On average, Phoenix is successful in placing one tenant for every three applicants. Actual rental applications in August 2019 were 240. Phoenix paid $9,000 for 350 hours of professional labor. Credit checks went up to $60 per application. Other costs in August 2019 (lease, secretarial help, and utilities) were $3,700. The average first monthly rentals for August 2019 were $980 per apartment unit for 80 units. Required: 1. (a) What is the total operating income variance…
- G Curtis Party Rentals offers party equipment such as tents, tables, chairs, and so on for outdoor events. The rental fees average $870 per event. Curtis receives a 15 percent deposit two months before the event, 60 percent the month before, and the remainder on the day the equipment is delivered and set up. Planners at Curtis estimate the following number of events for the last half of the current year: July August September October November December 260 280 330 240 200 230 Required: a. What are the expected revenues for Curtis Party Rentals for each month, July through December? Revenues are recorded in the month of the event. b. What are the expected cash receipts for each month, July through October? Complete this question by entering your answers in the tabs below.Start with the partial model in the file attached. Marvel Pence, CEO of Marvel’s Renovations, a custom building and repair company, is preparing documentation for a line of credit request from his commercial banker. Among the required documents is a detailed sales forecast for parts of 2020 and 2021: Sales Labor and Raw Materials May, 2020 $75,000 $80,000 June, 2020 $115,000 $75,000 July, 2020 $145,000 $105,000 August, 2020 $125,000 $85,000 September, 2020 $120,000 $65,000 October, 2020 $95,000 $70,000 November, 2020 $75,000 $30,000 December, 2020 $55,000 $35,000 January, 2021 $45,000 N/A Estimates obtained from the credit and collection department are as follows: collections within the month of sale, 20%; collections during the month following the sale, 60%; collections the second month following the sale, 25%. Payments for labor and raw materials are typically made during the month following the…Start with the partial model in the file attached. Marvel Pence, CEO of Marvel’s Renovations, a custom building and repair company, is preparing documentation for a line of credit request from his commercial banker. Among the required documents is a detailed sales forecast for parts of 2020 and 2021: Sales Labor and Raw Materials May, 2020 $75,000 $80,000 June, 2020 $115,000 $75,000 July, 2020 $145,000 $105,000 August, 2020 $125,000 $85,000 September, 2020 $120,000 $65,000 October, 2020 $95,000 $70,000 November, 2020 $75,000 $30,000 December, 2020 $55,000 $35,000 January, 2021 $45,000 N/A Estimates obtained from the credit and collection department are as follows: collections within the month of sale, 20%; collections during the month following the sale, 60%; collections the second month following the sale, 25%. Payments for labor and raw materials are typically made during the month following the…
- Start with the partial model in the file attached. Marvel Pence, CEO of Marvel’s Renovations, a custom building and repair company, is preparing documentation for a line of credit request from his commercial banker. Among the required documents is a detailed sales forecast for parts of 2020 and 2021: Sales Labor and Raw Materials May, 2020 $75,000 $80,000 June, 2020 $115,000 $75,000 July, 2020 $145,000 $105,000 August, 2020 $125,000 $85,000 September, 2020 $120,000 $65,000 October, 2020 $95,000 $70,000 November, 2020 $75,000 $30,000 December, 2020 $55,000 $35,000 January, 2021 $45,000 N/A Estimates obtained from the credit and collection department are as follows: collections within the month of sale, 20%; collections during the month following the sale, 60%; collections the second month following the sale, 25%. Payments for labor and raw materials are typically made during the month following the…A real estate office handles a 40-unit apartment complex. When the rent is $540 per month, all units are occupied. For each $40 increase in rent, however, an average of one unit becomes vacant. Each occupied unit requires an average of $65 per month for services and repairs. What rent should be charged to obtain a maximum profit.Janice Huffman has decided to start Rundle Cleaning, a residential housecleaning service company. She is able to rent cleaning equipment at a cost of $760 per month. Labor costs are expected to be $90 per house cleaned and supplies are expected to cost $6 per house. Required a. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of equipment a fixed or a variable cost? b. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of labor a fixed or a variable cost? c. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of supplies a fixed or a variable cost? d.…