Current Budget Variance Report Income statement for ACME Corporation For the month ending 28 February 2014...

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Current Budget Variance Report Income statement for ACME Corporation For the month ending 28 February 2014 Operating Income Period Budget Difference Budget Variance Product sales 29,540.32 25,000.00 4.540.32 18.16% Labor sales Net Sales 4,232.04 3,000.00 1.232.04 41.07% 33,772 36 28,000.00 5,772.36 20.62% Cost of Goods Sold 14,500.00 12.000.00 2.500.00 20.83% Gross Income 19,272.36 16,000.00 3,272.36 20.45% Operating Expenses Salaries 6,743.96 6,500,00 243.96 3.75% Advertising 432.32 500.00 -67.68 -13.54% Travel 100.08 200.00 -99.92 -49.96% Office 394.39 500.00 -105.61 -21.12% Other 92.99 100.00 -7.01 -7.01% Total Operating Expenses 7,763.74 7,800.00 -36.26 -0.46% Operating Income 11,508.62 8,200.00 3,308.62 40.35% Other Income & Expenses Other Income 118.13 50.00 68.13 136.26% Other Expenses 748.21 750.00 -1.79 -0.24% Total Other Income & Expenses 866.34 800.00 66.34 8.29% Net Income Before Taxes 10,642.28 7,400.00 3.242.28 43.81% Taxes Net Income 3,129.23 2,000.00 1129.23 56.46% 7,513.05 5,400.00 2,113.05 39.13% Read the above report and answer the following questions A- Is the above budget variance report a score-keeping report; an attention directing report; or problem-solving report? - Is the budget variance of the advertising operating expense a favourable variance or an favourable variance? Justify your answer 7 Pag Current Budget Variance Report Income statement for ACME Corporation For the month ending 28 February 2014 Operating Income Period Budget Difference Budget Variance Product sales 29,540.32 25,000.00 4.540.32 18.16% Labor sales Net Sales 4,232.04 3,000.00 1.232.04 41.07% 33,772 36 28,000.00 5,772.36 20.62% Cost of Goods Sold 14,500.00 12.000.00 2.500.00 20.83% Gross Income 19,272.36 16,000.00 3,272.36 20.45% Operating Expenses Salaries 6,743.96 6,500,00 243.96 3.75% Advertising 432.32 500.00 -67.68 -13.54% Travel 100.08 200.00 -99.92 -49.96% Office 394.39 500.00 -105.61 -21.12% Other 92.99 100.00 -7.01 -7.01% Total Operating Expenses 7,763.74 7,800.00 -36.26 -0.46% Operating Income 11,508.62 8,200.00 3,308.62 40.35% Other Income & Expenses Other Income 118.13 50.00 68.13 136.26% Other Expenses 748.21 750.00 -1.79 -0.24% Total Other Income & Expenses 866.34 800.00 66.34 8.29% Net Income Before Taxes 10,642.28 7,400.00 3.242.28 43.81% Taxes Net Income 3,129.23 2,000.00 1129.23 56.46% 7,513.05 5,400.00 2,113.05 39.13% Read the above report and answer the following questions A- Is the above budget variance report a score-keeping report; an attention directing report; or problem-solving report? - Is the budget variance of the advertising operating expense a favourable variance or an favourable variance? Justify your answer 7 Pag