10014_042610_18 - $6,650 $200 U $6,450 (Actual results for...

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4/26/2010 Lecture Description Formula Planning Budget Activity Variances Flexible Budget Actual Lawns (x) 500 550 550 Sales 75(x) 37,500 3,750 F 41,250 1,750 F 43,000 - Expenses Wages 5000+30x 20,000 1,500 U 21,500 2,000 U 23,500 Gas/Supplies 9x 4,500 450 U 4,950 150 U 5,100 Equip. Maint. 3x 1,500 150 U 1,650 350 F 1,300 Office Util. 1,000 1,000 -0- F 1,000 50 F 950 Office Rent 2,000 2,000 -0- F 2,000 -0- F 2,000 Equip. Depr. 2,500 2,500 -0- F 2,500 -0- F 2,500 Insurance 1,000 1,000 -0- F 1,000 200 U 1,200 Total Expenses 32,500 2,100 U 34,600 1,950 U 36,550 NOI $5,000 $1,650 F
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Unformatted text preview: $6,650 $200 U $6,450 (Actual results for sales units) Sales ^ = favorable Expenses ^ = unfavorable How well did we control our revenues & expenses? o Actual revenue > Flexible budget revenue = F Favorable o Actual expenses > Flexible budget expenses = U Unfavorable Activity variances show what went right or wrong solely because the actual level of activity differed from what we had expected o F = favorable o U = unfavorable o Why?...
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10014_042610_18 - $6,650 $200 U $6,450 (Actual results for...

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