Student Finance (StuFi) is a start-up that aims to use the power of social communities to transform the student loan market. It connects participants through a dedicated lending pool, enabling current students to borrow from a school's alumni community. StuFi's rev- enue model is to take an upfront fee of 40 basis points (0.40%) eachfrom the alumni investor and the student borrower for every loan originated on its platform. StuFi hopes to go public in the near future and is keen to ensure that its financial results are in line with that ambition. StuFii's budgeted and actual results for the third quarter of 2017 are presented below. Home Insert Page Layout Formulas Data View Review в Static Budget Actual Results 1. New loans originated Average amount of loan Variable costs per loan: 8,200 10,250 2. $145,000 $162,000 4 $475 (9.5 hrs at $50 per hour) $360 (8 hrs at $45 per hour) Professional labor Credit verification $100 $100 6. Federal documentation fees $120 $125 Courier services Administrative costs (fixed) 10 Technology costs (fixed) $50 $800,000 $54 $945,000 9. $1,300,000 $1,415,000
Student Finance (StuFi) is a start-up that aims to use the power of social communities to transform the student loan market. It connects participants through a dedicated lending pool, enabling current students to borrow from a school's alumni community. StuFi's rev- enue model is to take an upfront fee of 40 basis points (0.40%) eachfrom the alumni investor and the student borrower for every loan originated on its platform. StuFi hopes to go public in the near future and is keen to ensure that its financial results are in line with that ambition. StuFii's budgeted and actual results for the third quarter of 2017 are presented below. Home Insert Page Layout Formulas Data View Review в Static Budget Actual Results 1. New loans originated Average amount of loan Variable costs per loan: 8,200 10,250 2. $145,000 $162,000 4 $475 (9.5 hrs at $50 per hour) $360 (8 hrs at $45 per hour) Professional labor Credit verification $100 $100 6. Federal documentation fees $120 $125 Courier services Administrative costs (fixed) 10 Technology costs (fixed) $50 $800,000 $54 $945,000 9. $1,300,000 $1,415,000
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Student Finance (StuFi) is a start-up that aims to use
the power of social communities to transform the student loan market. It connects participants through a
dedicated lending pool, enabling current students to borrow from a school's alumni community. StuFi's rev-
enue model is to take an upfront fee of 40 basis points (0.40%) eachfrom the alumni investor and the student
borrower for every loan originated on its platform.
StuFi hopes to go public in the near future and is keen to ensure that its financial results are in line with
that ambition. StuFii's budgeted and actual results for the third quarter of 2017 are presented below.
Home
Insert
Page Layout
Formulas
Data
View
Review
в
Static Budget
Actual Results
1.
New loans originated
Average amount of loan
Variable costs per loan:
8,200
10,250
2.
$145,000
$162,000
4
$475 (9.5 hrs at $50 per hour)
$360 (8 hrs at $45 per hour)
Professional labor
Credit verification
$100
$100
6.
Federal documentation fees
$120
$125
Courier services
Administrative costs (fixed)
10 Technology costs (fixed)
$50
$800,000
$54
$945,000
9.
$1,300,000
$1,415,000
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