The Terminator Inc. Variance Report For the Month Ended April 30 Actual Planning Budget Results Variances Jobs. Revenue 105 $20,520 100 $19,500 $1,020 F Expenses: Mobile team operating costs Exterminating supplies Advertising ... Dispatching costs Office rent Insurance. 10,320 960 800 2,340 1,800 2,100 18,320 $ 2,200 10,000 320 U 1,800 800 2,200 1,800 2.100 18,700 $ 800 840 F 140 U Total expense 380 F Net operating income $1,400 F
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.
The Terminator Inc. provides on-site residential pest extermination services. The company has several mobile teams who are dispatched from a central location in company-owned trucks. The company uses the number of jobs to measure activity. At the beginning of April, the company budgeted for 100 jobs, but the actual number of jobs turned out to be 105. A report comparing the budgeted revenues and costs to the actual revenues and costs appears below:
(picture)
Required:
Is the above variance report useful for evaluating how well revenues and costs were controlled during April? Why, or why not?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
