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Perfect Patties, Inc. has several divisions. One division provides birthday parties at their facility. 2 Each party sold provides entertainment, decorations, food, and party favors for 10 children. 3 The bookkeeper has prepared a report comparing actual results for the month of June to budgeted results. 5 6 Perfect Parties Birthday Party Division Analysis of Revenues and Costs For the Month Ended June 30 7 8 9 Planning Budget Actual Results Variances 80 92 $ 36,000 $ 39,560 $ 3,560 F 10 11 Number of parties 12 13 Revenue 14 Expenses: 15 Food costs 16 Party supplies 17 Party worker wages 18 Administrative salaries Equipment depreciation 20 Rent 21 Total expense 22 Net operating income 7,200 3,200 6,400 3,700 1,200 5,000 26,700 9,300 $ 8,648 3,404 7,728 3,500 1,200 5,000 29,480 10,080 1,448 U 204 U U 1,328 U 200 F None - None 2,780 U 780 F 19 $ $ Food costs, party supplies and party worker wages are variable costs. Administrative salaries, equipment depreciation and rent are fixed costs. Prepare a new report for June using the flexible budget approach. Enter all variances as positive amounts. If there is a variance, write an IF statements to indicate if it is For U(using capital letters). If there is no variance, enter the word None. B 1 K 29 co E G H Perfect Parties Birthday Party Division Flexible Budget Performance Report For the Month Ended June 30 30 31 32 33 Planning Budget 80 Flexible Budget 92 Revenue and Spending Variances Activity Variances Actual Results 92 $ 36,000 $ 5,400 $ 41,400 34 Number of parties 35 36 Revenues 37 Expenses: 38 Food costs 39 Party supplies 40 Party worker wages 41 Administrative salaries 42 Equipment depreciation 43 Rent 44 Total expense 45 Net operating income 7,200 3,200 6,400 3,700 1,200 5,000 26,700 $ 9.300

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