Variance Analysis reports (chapter 8, text) can be prepared to examine the difference between budgeted and actual figures for:

1. Production in terms of cost, quantity and quality
2. Sales
3. Profit
4. Income per sales dollar
5. Growth rate

Requirements: Complete the following variance analysis report.

Variance Analysis Report

Actual

Budget

Variances

REVENUE

320,000

318,750

Direct Expense (variable)

101,000

100,000

Allocated general expenses (fixed)

78,000

80,000

Allocated service expenses:

Department 1

20,500

20,000

Department 2

65,000

62,500

Department 3

101,500

100,000

TOTAL EXPENSES

NET INCOME