4. SFG Catering is one of the most successful catering business in town. December is the...

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4. SFG Catering is one of the most successful catering business in town. December is the busiest month of the year. The owner of SFG Catering has a chance to evaluate the operations budget she has prepared for December as well as the actual results achieved by the company. Complete the variance dollars and variance percentages for each budgeted item and answer the questions that follow. Sales: Food Beverage Total Sales Cost of Sales: Food Beverage Total Sales Gross Profit: Food Beverage Total Sales Operating Expenses: Salaries & Wages Employee Benefits Direct Operating Expenses Music and Entertainment Marketing Utilities Administrative and General Repairs and Maintenance Depreciation Total Operating Expenses Operating Interest Income before taxes Taxes Net income SFG Catering Budget vs Actual for December 20x5 $ Budget 185,200 73.9% 65,250 26.1% 250,450 100.0% % 67,500 36.4% 14,500 22.2% 82,000 32.7% 117,700 63.6% 50,750 77.8% 168,450 67.3% 38,750 15.5% 9,500 3.8% 26,500 1,200 3,250 24,750 10.6% 0.0% 0.5% 1.3% 9.9% 3,500 1.4% 2,200 0.9% 109,650 43.8% 58,800 23.5% 7,100 2.8% 51,700 20.6% 12,925 5.2% 38,775 15.5% $ 193,251 68.4% 89,250 31.6% 282,501 100.0% 150 Actual % 68,925 35.7% 20,415 22.9% 89,340 31.6% 124,326 64.3% 68,835 77.1% 193,161 68.4% 44,850 17.9% 11,203 4.5% 27,210 10.9% 0.0% 0.1% 3,289 1.3% 25,598 10.2% 2,874 1.1% 2,200 0.9% 117,374 46.9% 75,7 30.3% 7,100 2.8% 68,687 27.4% 17,172 6.9% 51,515 20.6% $ Variance % a) What is the variance (dollar and percent) in SFG's total cost of sales for the month of December? b) What do you attribute the variance in total cost of sales for December to? c) What is the variance (dollar and percent) in SFG's salaries and wages for the month of December? d) What do you attribute the variance in salaries and wages for December to? e) What is the variance (dollar and percent) in marketing expenses for the month of December? f) What advice would you give SFG regarding the marketing expense variance? g) What is the variance (dollar and percent) in SFG's net income for the month of December? h) What do you attribute the variance in net income for December to? 4. SFG Catering is one of the most successful catering business in town. December is the busiest month of the year. The owner of SFG Catering has a chance to evaluate the operations budget she has prepared for December as well as the actual results achieved by the company. Complete the variance dollars and variance percentages for each budgeted item and answer the questions that follow. Sales: Food Beverage Total Sales Cost of Sales: Food Beverage Total Sales Gross Profit: Food Beverage Total Sales Operating Expenses: Salaries & Wages Employee Benefits Direct Operating Expenses Music and Entertainment Marketing Utilities Administrative and General Repairs and Maintenance Depreciation Total Operating Expenses Operating Interest Income before taxes Taxes Net income SFG Catering Budget vs Actual for December 20x5 $ Budget 185,200 73.9% 65,250 26.1% 250,450 100.0% % 67,500 36.4% 14,500 22.2% 82,000 32.7% 117,700 63.6% 50,750 77.8% 168,450 67.3% 38,750 15.5% 9,500 3.8% 26,500 1,200 3,250 24,750 10.6% 0.0% 0.5% 1.3% 9.9% 3,500 1.4% 2,200 0.9% 109,650 43.8% 58,800 23.5% 7,100 2.8% 51,700 20.6% 12,925 5.2% 38,775 15.5% $ 193,251 68.4% 89,250 31.6% 282,501 100.0% 150 Actual % 68,925 35.7% 20,415 22.9% 89,340 31.6% 124,326 64.3% 68,835 77.1% 193,161 68.4% 44,850 17.9% 11,203 4.5% 27,210 10.9% 0.0% 0.1% 3,289 1.3% 25,598 10.2% 2,874 1.1% 2,200 0.9% 117,374 46.9% 75,7 30.3% 7,100 2.8% 68,687 27.4% 17,172 6.9% 51,515 20.6% $ Variance % a) What is the variance (dollar and percent) in SFG's total cost of sales for the month of December? b) What do you attribute the variance in total cost of sales for December to? c) What is the variance (dollar and percent) in SFG's salaries and wages for the month of December? d) What do you attribute the variance in salaries and wages for December to? e) What is the variance (dollar and percent) in marketing expenses for the month of December? f) What advice would you give SFG regarding the marketing expense variance? g) What is the variance (dollar and percent) in SFG's net income for the month of December? h) What do you attribute the variance in net income for December to?

Answer rating: 100% (QA)

Sure lets go through these questions one by one and calculate the variances as well as discuss potential reasons for them a The variance in SFGs total ... View the full answer