Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. prepare a planning budget for august. in august, t

Prepare a planning budget for August. In August, the company actually sold 11,200 servings of...

80.2K

Verified Solution

Question

Accounting

  1. Prepare a planning budget for August.
  2. In August, the company actually sold 11,200 servings of ice cream and staffed 780 employee labor-hours. Its budgeted revenue per serving is $5.00. Prepare a flexible budget for August using this new information.
  3. Calculate the activity variances in August.
  4. Provide a brief description of how the event's budget aligned to the planning budget.

Annies Homemade is preparing a planning budget for August. Its budgeted revenue per serving is $5.00. It has identified two cost driversnumber of servings and number of labor-hours. The company expects to sell 10,800 servings and to staff 700 employee labor-hours in August. Data concerning the companys cost formulas are shown below:

Fixed Cost Per Month Cost per Serving Cost per Labor-Hour
Ingredients expense $1.25
Salaries and wages expense $7,000 $8.00
Franchise fee $0.25
Credit card processing fees $0.09
Utilities expense $300 $0.02
Rent expense $3,000
Equipment depreciation expense $1,750
Other expenses $ 4,200

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students