Asked by Suzanne Meyer on Jul 19, 2024
Verified
Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
In March, the school budgeted for 1,710 students and 68 courses. The school's income statement showing the actual results for the month appears below:
Required:Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for March. Label each variance as favorable (F) or unfavorable (U).
Cost Drivers
Factors that cause the cost of an activity or process to change.
Students
Individuals enrolled in an educational institution or program, engaged in learning and academic studies.
Courses
Educational classes or programs of study provided by an institution such as a university, college, or training center.
- Analyze financial variances against budget forecasts, determining if they reflect favorable or unfavorable conditions.
- Interpret financial health through the lens of flexible budget reports.
- Enact cost and revenue formula usage for the creation of budget analysis.
Verified Answer
NJ
Learning Objectives
- Analyze financial variances against budget forecasts, determining if they reflect favorable or unfavorable conditions.
- Interpret financial health through the lens of flexible budget reports.
- Enact cost and revenue formula usage for the creation of budget analysis.
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