The Tuguegarao City branch manager was not satisfied not being able to meet the desired revenues butwas happy with the result of his control performance which were all favorable, otherwise his net operatingincome would be much lower.The Vice President for operations is not satisfied with the performance report of the Tuguegarao CityBranch and he cannot figure out how he can evaluate the cost control performance of the Tuguegarao Citybranch manager.The performance report of Cagayan Transport Company branch in Tuguegarao City for the quarter endingMarch 31, 2021 is shown below:Cagayan Transport CompanyTuguegarao City BranchPERFORMANCE REPORTFor the Quarter Ending March 31, 2021BudgetP800.000ActualP760.000VarianceP40.000 URevenuesVariable Costs:Gas & OilRepairsSuppliesPayrollTotalFixed Costs:SupervisionRentDepreciationOthersP 60,00080,00080,000402.000P 622.000P 56,80078,40078,800390.000P 604.000P 3,200 F1,600 F1,200 F12.000 FP 18.000 FP 16,00016,00048,00016.000P 718.000P 82,000P 16,00016,00048,00016.000P 700.000P 60,000Total CostsOperating IncomeP 18.000 FP 22,000 UREQUIRED:1. Prepare a columnar flexible budget for expected costs at P720,000, P760,000, P800,000 andPS40,000 levels of revenue. Include both variable and fixed costs in the budget.2. How does Tuguegarao City Branch fair based on 95% level 95% level of operation in measuringits control performance over variable costs?

Budgeting - It is the statement showing future estimated cash inflows and cash outflows of the…

The Tuguegarao City branch manager was not satisfied not being able to meet the desired revenues but was happy with the result of his control performance which were all fayorable, otherwise his net operating income would be much lower. The Vice President for operations is not satisfied with the performance report of the Tuguegarao City Branch and he cannot figure out how he can evaluate the cost control performance of the Tuguegarao City branch manager. The performance report of Cagayan Transport Company branch in Tuguegarao City for the quarter ending March 31, 2021 is shown below:

The Tuguegarao City branch manager was not satisfied not being able to meet the desired revenues but was happy with the result of his control performance which were all fayorable, otherwise his net operating income would be much lower. The Vice President for operations is not satisfied with the performance report of the Tuguegarao City Branch and he cannot figure out how he can evaluate the cost control performance of the Tuguegarao City branch manager. The performance report of Cagayan Transport Company branch in Tuguegarao City for the quarter ending March 31, 2021 is shown below:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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