Problem 17-32 Analyze Performance for a Restaurant (LO 17-5) Doug\'s Diner is pl

Question

Problem 17-32 Analyze Performance for a Restaurant (LO 17-5) Doug's Diner is planning to expand operations and is concemed that its reporting system might need improvement. The master budget income statement for the Downtown Doug's, which contains a delicatessen and restaurant operation, follows (in thousands) Sales revenue $ 500 $1,250 $1,750 Costs Purchases Hourly wages Franchise fee Advertising Utilities Depreciation Lease cost Salaries 275 25 15 50 35 25 15 15 500775 462 53 150 98 437 38 100 38 25 25 40 40 Total costs S 455 $ 1,226 $1,681 Operating profit s 45 45 s 24 24 $69 The company uses the following performance report for management evaluation DOWNTOWN DOUG'S Net Income for the Year (5000) Actual Results Over- or Actual Results Delicatessen Restaurant Total Budget (Under-) Budget Sales revenueS 600$ 1,000 $1,600 $1750 $ (150) irefox automatically sends some data to Mozilla so that we can improve your experience

Explanation / Answer

Actual Result Purchase varaince Marketing & Administrative Variance Flexible Budget Activity Variance Planning budget Sales revenue 600 0 600 100 F 500 Variable Cost: Purchase 365 35 UF 330 55 UF 275 Hourly Wages 30 0 No Variance 30 5 UF 25 Franchise Fee 18 0 No Variance 18 3 UF 15 Utilities 39 3 F 42 7 UF 35 Total variable Cost 452 32 UF 420 70 UF 350 Contribution Margin 148 32 UF 180 30 F 150 Fixed Cost: Advertising 50 0 No Variance 50 0 No Variance 50 Depriciation 25 0 No Variance 25 0 No Variance 25 Lease 15 0 No Variance 15 0 No Variance 15 Salaries 15 0 No Variance 15 0 No Variance 15 Total Fixed Cost 105 0 No Variance 105 0 No Variance 105 Operating Profit 43 -32 UF 75 30 F 45

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---