Copy s-% , ., conditional Format as BIu Number C D E F JKLM N O P QR S Performan
ID: 2429476 • Letter: C
Question
Copy s-% , ., conditional Format as BIu Number C D E F JKLM N O P QR S Performance Report For the Year Ended December 31 Partner in Charge: Vanessa Smith Flexible Master Actual results Variance Variance budget budget 4,900 0 4,900 (100)U 5,000 Billed hours Revenue Controllable variable costs: Direct labor Variable overhead (137,200) (34,300) (120,000) (40,000) Contribution margin Controllable fixed costs: Rent Other administrative ?(30,000) 30,000) expenses (45,000) Branch operating income Actual Flexible Master ROI Residual IncomeExplanation / Answer
a.
Note: I have tried my best for correct solution still you find further help please ask in comment.
Variance are given as positive no, still your solution required - then please add - sign in front of unfavorable variances.
Sewell, Bagan, and Clark, LLP City Branch Performance Report For the Year Ended December 31 Partner in Charge: Vanessa Smith Actual results Variance Flexible budget Variance Master budget Billed hours 4,900 0 4,900 100 U 5,000 Revenue $254,800 $9,800 F $245,000 $5,000 U $250,000 Controllable variable costs: Direct labor (137,200) 19,600 U (117,600) 2,400 F (120,000) Variable overhead (34,300) 4,900 F (39,200) 800 F (40,000) Contribution margin $ 83,300 $ 4,900 U $ 88,200 $ 1,800 U $ 90,000 Controllable fixed costs: Rent (30,000) - (30,000) - (30,000) Other administrative expenses (42,000) 3,000 F (45,000) - (45,000) Branch operating income $ 11,300 $ 1,900 U $ 13,200 $ 1,800 U $ 15,000a.
Actual Flexible Master ROI = $ 11,300 / $ 40,000 $ 13,200 / $ 40,000 $ 15,000 / $ 40,000 = 28.25% 33.00% 37.50% Residual Income = $ 11,300 - $ 12,000 $ 13,200 - $ 12,000 $ 15,000 - $ 12,000 = $ (700) $ 1,200 $ 3,000 40000 x 30% = 12000