Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting: Revenue Faculty wages Course supplies Administrative expenses Fixed Variable element per element per month $ 0 $ 0 $ 0 $ 26,400 student $ 288 $ 0 Variable element per course $ 0 $ 50 $ 25 $ 3,080 $ 38 $ 50 In March, the school budgeted for 1,890 students and 86 courses. The school's income statement showing the actual results for the month appears below: Roberds Tech Income Statement For the Month Ended March 31 Actual students Actual courses Revenue Expenses: Faculty wages 1,790 89 $ 401,340 213,950 61,590 Course supplies Administrative expenses Total expense Net operating income Required: 79,562 355,102 $ 46,238 Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for March. Label each variance as favorable (F) or unfavorable (U). 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.

Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting: Revenue Faculty wages Course supplies Administrative expenses Fixed Variable element per element per month $ 0 $ 0 $ 0 $ 26,400 student $ 288 $ 0 Variable element per course $ 0 $ 50 $ 25 $ 3,080 $ 38 $ 50 In March, the school budgeted for 1,890 students and 86 courses. The school's income statement showing the actual results for the month appears below: Roberds Tech Income Statement For the Month Ended March 31 Actual students Actual courses Revenue Expenses: Faculty wages 1,790 89 $ 401,340 213,950 61,590 Course supplies Administrative expenses Total expense Net operating income Required: 79,562 355,102 $ 46,238 Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for March. Label each variance as favorable (F) or unfavorable (U). 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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9Q: A company has prepared the operating budget and the cash budget. It is now preparing the budgeted...

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Concept explainers

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.

Question

Sager

Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely
student and course. The school uses the following data in its budgeting:
Revenue
Faculty wages
Course supplies
Administrative expenses
Fixed
Variable
element per element per
Variable
element per
month
student
$ 0
$ 288
course
$ 0
$ 0
$ 0
$ 0
$ 26,400
$ 50
$ 25
$ 3,080
$ 38
$ 50
In March, the school budgeted for 1,890 students and 86 courses. The school's income statement showing the actual results for the
month appears below:
Roberds Tech
Income Statement
For the Month Ended March 31
Actual students
Actual courses
Revenue
Expenses:
Faculty wages
Course supplies
Administrative expenses
Total expense
Net operating income
Required:
1,790
89
$ 401,340
213,950
61,590
79,562
355,102
$ 46,238
Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for
March. Label each variance as favorable (F) or unfavorable (U).
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.

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