TASK 3.docx - Assessment 3 Humberto Pavin Big Red Bicycle...

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Assessment 3 Humberto PavinBig Red BicycleMaster Budget FY 2011/2012 FYQ1Q2Q3Q4REVENUECommissions77,500 17,500 25,000 17,500 17,500 Direct wages fixed200,000 50,000 50,000 50,000 50,000 Sales3,100,000 700,000 1,000,000 700,000 700,000 Cost of Goods Sold400,000 100,000 100,000 100,000 100,000 Gross Profit2,422,500 532,500 825,000 532,500 532,500 EXPENSESGeneral & Administrative ExpensesTravel20,000 5,000 5,000 5,000 5,000 Legal Fees5,000 1,250 1,250 1,250 1,250 Bank Charges600 150 150 150 150 Office Supplies5,000 1,250 1,250 1,250 1,250 Postage & Printing400 100 100 100 100 Dues & Subscriptions500 125 125 125 125 Telephone10,000 2,500 2,500 2,500 2,500
Assessment 3 Humberto PavinRepairs & Maintenance50,000 25,000 25,000 Payroll Tax25,000 6,250 6,250 6,250 6,250 Marketing ExpensesAdvertising200,000 50,000 50,000 50,000 50,000 Employment ExpensesSuperannuation45,000 11,250 11,250 11,250 11,250 Wages & Salaries500,000 125,000 125,000 125,000 125,000 Staff Amenities20,000 5,000 5,000 5,000 5,000 Occupancy CostsElectricity40,000 10,000 10,000 10,000 10,000 Insurance100,000 25,000 25,000 25,000 25,000 Rates100,000 25,000 25,000 25,000 25,000 Rent200,000 50,000 50,000 50,000 50,000 Water30,000 7,500 7,500 7,500 7,500 Waste Removal50,000 12,500 12,500 12,500 12,500 TOTAL EXPENSES1,401,500 362,875 362,875 337,875 337,875 NET PROFIT (BEFORE INTEREST &TAX)1,021,000 169,625 462,125 194,625 194,625
Assessment 3 Humberto PavinIncome Tax Expense (25%Net)255,250 42,406 115,531 48,656 48,656 NET PROFIT AFTER TAX765,750 127,219 346,594 145,969 145,969
Assessment 3 Humberto PavinVariance Report:Discuss the variance reason, impact of having variances and how is it going to affect the current contingency plan and implementation plan?BIG RED BYCICLE25/06/2019Humberto Pavin – Senior Accountanti.Executive SummaryThe purpose of this report is to implement a process to monitor expenditure and income. A spreadsheet wasprepared to capture and compare actual income and expenditure to budgeted figures. Each quarter aredemonstrated regarding to the financial year. This report will show variation occurred between planned andobtained.ii.Details - Body of reporta.Analysis Quarter 1Big Red Bycicle Pty LtdMaster Budget FY 2011/2012Q1BudgetQ1ActualVariation $Variation %RevenueCommissions (2% sales)1750015000-2500-14%Direct wages fixed500005000000%
Assessment 3 Humberto PavinSales700000600000-100000-14%Cost of Goods Sold10000095000-5000-5%Gross Profit532500440000-92500-17%ExpensesGeneral&AdministrativeExpensesAccounting fees50004000-1000-20%Legal fees12501050-200-16%Bank charges1502005033%Office supplies12501000-250-20%Postage & printing1001252525%Dues & subscriptions1251502520%Telephone2500280030012%Repairs & maintenance2500020000-5000-20%Payroll tax6250625000%Marketing ExpensesAdvertising500005200020004%Employment ExpensesSuperannuation112501125000%Wages & salaries12500012500000%Staff amenities50006000100020%Occupancy CostsElectricity10008000-2000-20%
Assessment 3 Humberto Pavin0Insurance250002500000%Rates250002500000%Rent500005000000%Water750010000250033%Waste removal1250015000250020%TOTAL EXPENSES362875362825-500%NET PROFIT (BEFORE INTEREST& TAX)23462577175-157450-67%Income Tax Expense (25%Net)5865619293,75-39362,25-67%NET PROFIT AFTER TAX17596957881,25-118087,75-67%Sales had $100,000 less than expected with variation of -14%, resulting in less commission to employees (-14%).

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