We use cookies to give you the best experience possible. By continuing weâ€™ll assume youâ€™re on board with our cookie policy

# Vaughan Speed Clean

The whole doc is available only for registered users
• Pages: 2
• Word count: 296
• Category: Speed

A limited time offer! Get a custom sample essay written according to your requirements urgent 3h delivery guaranteed

Order Now

In order to calculate managerâ€™s bonus we need to look at the flexible budget to compare actual profit with budget profit target. Flexible budget Actual Variance
Revenue \$108,100 (23 x \$10 x 470) \$120,555 \$12,455 F Variable expenses (50% of revenues) 54,020 60,277 6,227 U
Fixed expenses 53,870 55,000 1,180 U
Total expenses 107,870 115,277 7,457 U
Profit \$230 \$5,278 \$5,048 F
The actual profit meets the budgeted target of \$230, therefore the manager of Jane-HW7 location is entitled to at least \$1,000 bonus. The total bonus amount = \$1,000 + (\$5,278 – \$230) /10 x \$1 = \$1,504.80 Budgeted Actual

Cars washed 18,400 12,690
Price per car wash \$10 \$9.50
Variable cost \$5 \$4.75
Contribution margin \$5 \$4.75
Static budget variance = Actual results x Static budget amount (27 x 470 x \$4.75) â€“ ( 23 x 800 x \$5) = \$60,277.50 – \$92,000 = \$31, 722.50 U Flexible budget variance = Actual sales in units x (actual CM â€“ Budgeted CM) 12,690 x (\$4.75 – \$5) = \$3,172.50 U

Sales volume variance = (Actual sales quantity – Static budget sales quantity) X Budgeted CM (12,690 â€“ 18,400) x \$5 = \$28,550 U
Proof:
Static budget variance = Flexible budget variance x Sales volume variance \$3,172.50 + \$28,550 = \$ 31,722.50 U
Price variance = (27 x 470) x (\$9.5 – \$10) = \$6,345 U
Quantity variance = (27 x 470 â€“ 23 x 800) x \$10 = \$57,100 U As we can see from the above calculations, budget variances can result from two sources – the things that can be controlled and things that cannot. Uncontrollable factors are often external and in our case they are reduced hours of good weather. The Static budget does not take in consideration the weather factor and all the unfavourable variables reflect that. There are a few

##### Related Topics

We can write a custom essay

Order an essay
300+
Materials Daily
100,000+ Subjects
2000+ Topics
Free Plagiarism
Checker
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

Sorry, but only registered users have full access

immediately?

Thank You A Lot!

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?

Can't find What you were Looking for?