Question

The Skokomish Indian tribe sells fireworks for the 5 weeks preceding July 4. The tribe’s stand on Highway 101 near Hoodsport had budgeted sales of $80,000. Expected expenses were as follows:
Cost of fireworks . $ 40,000
Labor cost ..... 10,000
Other costs ..... 7,000
Total costs .... $ 57,000
Actual sales were $79,440, almost equal to the budget. The tribe spent $39,400 for fireworks, $13,100 for labor, and $6,900 for other costs.
1. Compute budgeted profit and actual profit.
2. Prepare a performance report to help identify those costs that were significantly different from the budget.
3. Suppose the tribe uses a management-by-exception rule. What costs deserve further explanation? Why?



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  • CreatedNovember 19, 2014
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