Ann Olsson runs a small coffee shop and is analyzing the past 3 months of operations....

 

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Ann Olsson runs a small coffee shop and is analyzing the past 3 months of operations. Using the data below, prepare a flexible budget based on the actual results, and then calculate the overall variance for each line item. (You will first need to calculate and enter the rate for Supplies.) The average customer spends $7 per visit. Wages and the variable portion of Utilities are budgeted based on the number of employee hours. Supplies and Cost of Goods Sold are budgeted based on the number of customers. Employee Hours Worked Number of Customers Sales Variable Costs: Cost of Goods Sold @ $4.50 Wages @ $8.00 Utilities @ $0.80 Supplies @ Total VC Contribution Margin Fixed Costs: Leases and Rents Utilities - base costs Total FC Net Income Static Budget 1,200 2,400 $16,800 10,800 9,600 960 1.200 $11,760 $ 5,040 $ 1,800 40 $ 1,840 $ 3,200 Actual Results 1,250 2,350 $17,200 10,900 10,800 925 1,250 $12,255 $ 4,945 $ 1,900 40 $ 1,940 $ 3,005 Flexible Budget Variance For U Ann Olsson runs a small coffee shop and is analyzing the past 3 months of operations. Using the data below, prepare a flexible budget based on the actual results, and then calculate the overall variance for each line item. (You will first need to calculate and enter the rate for Supplies.) The average customer spends $7 per visit. Wages and the variable portion of Utilities are budgeted based on the number of employee hours. Supplies and Cost of Goods Sold are budgeted based on the number of customers. Employee Hours Worked Number of Customers Sales Variable Costs: Cost of Goods Sold @ $4.50 Wages @ $8.00 Utilities @ $0.80 Supplies @ Total VC Contribution Margin Fixed Costs: Leases and Rents Utilities - base costs Total FC Net Income Static Budget 1,200 2,400 $16,800 10,800 9,600 960 1.200 $11,760 $ 5,040 $ 1,800 40 $ 1,840 $ 3,200 Actual Results 1,250 2,350 $17,200 10,900 10,800 925 1,250 $12,255 $ 4,945 $ 1,900 40 $ 1,940 $ 3,005 Flexible Budget Variance For U

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To calculate the flexible budget and overall variance for each line item well first need to determin... View the full answer