APC Car Washings accountant has just finished themonthly figures for February 2017 and has prepared the followingschedules
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APC Car Washing’s accountant has just finished themonthly figures for February 2017 and has prepared the followingschedules showing current month and year- to-date budgets andactual: | |||||
APC car washing performance analysis and varinacereport | |||||
Feb-17 | JUL2016 - Feb 2017 | ||||
budget | actual | budget | |||
cars expected to be washed | 180 | 195 | 1,440 | ||
expected revunue per job | $ 30.00 | $ 35.00 | $ 30.00 | ||
total revunue | $ 5,400.00 | $ 6,825.00 | $ 43,200.00 | ||
less: variable costs | |||||
labour cost | $ 1,080.00 | $ 1,365.00 | $ 8,640.00 | ||
consumables | $ 180.00 | $ 210.00 | $ 1,440.00 | ||
motor vehicle expenses | $ 270.00 | $ 310.00 | $ 2,160.00 | ||
total variable costs | $ 1,530.00 | $ 1,885.00 | $ 12,240.00 | ||
fix costs | |||||
advertising | $ 200.00 | $ 200.00 | $ 1,600.00 | ||
depreciation | $ 250.00 | $ 250.00 | $ 2,000.00 | ||
insurance | $ 100.00 | $ 100.00 | $ 800.00 | ||
mobile telephone costs | $ 150.00 | $ 176.00 | $ 1,200.00 | ||
office costs | $ 450.00 | $ 520.00 | $ 3,600.00 | ||
total fix costs | $ 1,150.00 | $ 1,246.00 | $ 9,200.00 | ||
total costs (variable+fixed) | $ 2,680.00 | $ 3,131.00 | $ 21,440.00 | ||
net income | $ 2,720.00 | $ 3,694.00 | $ 21,760.00 | ||
Required: Prepare a report comparing Actual toBudget for both the: | |||||
a. Current month of February, and | |||||
b. Year-to-date figures to disclose relevantvariances for revenue and cost items and to signify whether thevariance is favourable (F) or unfavourable (U). | |||||
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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