Budgetary Planning and Control (Excel), accounting homework help

User Generated

wtyr75

Business Finance

Description

The purpose of this assignment is to evaluate a static budget and prepare and evaluate a flexible budget. You are required to calculate and analyze variances and discuss how variances are critical to managerial decision making.

Instructions:

1. Download the Excel file posted to the week 6 projects thread.

2. Review the static budget.

3. Prepare a flexible budget.

4. Complete the explanations tab via answering the questions incorporated therein.

Unformatted Attachment Preview

Midwest Veterinary Clinic & Hotel The static budget was based on the following. Total number of boarding days Average animal fee/day Annual unit sales Actual 365 27.5 3200 Static Budget 365 33 4000 5.25 4.25 3.50 0.85 3.00 4.00 2.00 1.00 Variable cost per animal per day Feed Veterinary Fees Labor Supplies Fixed Costs - See Static Budget Tab Flexible Budget Tab requirements 1. Prepare a flexible budet and variance analysis based on the data provided. If applicable, list assumptions via row 38. Questions Tab requirements 1. Answer the questions incorporated therein. Midwest Veterinary Clinic & Hotel Static Budget Actual Static Budget Variance Sales 88,000 132,000 (44,000) Less: Variable Expenses Feed Veterinary Fees Labor Supplies 16,800 13,600 11,200 2,720 12,000 16,000 8,000 4,000 4,800 (2,400) 3,200 (1,280) Total Variable Expenses 44,320 40,000 4,320 Contribution Margin 43,680 92,000 (48,320) 500 300 7,500 8,500 7,500 4,625 3,500 1,750 3,760 10,500 500 300 7,500 8,500 4,200 2,750 3,650 1,500 4,200 7,800 3,300 1,875 (150) 250 (440) 2,700 Total Fixed Expense 48,435 40,900 7,535 Net Income (Loss) (4,755) 51,100 (55,855) Less: Fixed Expense Depreciation Interest & Penalties Insurance Rent Advertisement Repairs & Maintenance Entertainment SG&A Utilities Taxes Favorable/ (Unfavorable) Unfavorable Unfavorable Favorable Unfavorable Favorable Unfavorable Unfavorable Favorable Favorable Favorable Favorable Unfavorable Unfavorable Favorable Unfavorable Favorable Unfavorable Unfavorable Unfavorable Midwest Veterinary Clinic & Hotel Flexible Budget Actual Sales Less: Variable Expenses Feed Veterinary Fees Labor Supplies Total Variable Expenses Contribution Margin Less: Fixed Expense Depreciation Interest & Penalties Insurance Rent Advertisement Repairs & Maintenance Entertainment SG&A Utilities Taxes Total Fixed Expense Net Income (Loss) Assumptions: Flexible Budget Variance Favorable/ (Unfavorable) Question 1 Discuss why the static budget was or was not a useful tool for management decision making purposes. State examples to sup in row 4. Answer to question 1: Question 2 Discuss how the company could use your flexible budget to improve the performance of the business. Write your response in Answer to question 2: Question 3 Provide management with at least two accounting recommendations. State how the business owner could use your recomm run the business. Write your response in row 16. Answer to question 3: ses. State examples to support your answer. Write your response ss. Write your response in row 10. er could use your recommendations to help him/her operate and
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Explanation & Answer

Hello, please review the attached and inform if there is any part that needs clarification or editionLooking forward to here from

Midwest Veterinary Clinic & Hotel

The static budget was based on the following.

Total number of boarding days
Average animal fee/day
Annual unit sales

Actual
365
27.5
3200

Static
Budget
365
33
4000

5.25
4.25
3.50
0.85

3.00
4.00
2.00
1.00

Variable cost per animal per day
Feed
Veterinary Fees
Labor
Supplies

800

Fixed Costs - See Static Budget Tab

Flexible Budget Tab requirements
1. Prepare a flexible budet and variance analysis based on the data provided.
If applicable, list assumptions via row 38.
Questions Tab requirements
1. Answer the questions incorporated therein.

Midwest Veterinary Clinic & Hotel
Flexible Budget
Actual

Flexible
Budget

Sales

88,000.00

88,000.00

Less: Variable Expenses
Feed
Veterinary Fees
Labor
Supplies

16,800.00
13,600.00
11,200.00
2,...


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