Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting: Revenue Faculty wages Course supplies Administrative expenses Fixed Variable element per element per month $ 0 $ 0 $ 0 $ 26,400 student $ 288 $ 0 Variable element per course $ 0 $ 50 $ 25 $ 3,080 $ 38 $ 50 In March, the school budgeted for 1,890 students and 86 courses. The school's income statement showing the actual results for the month appears below: Roberds Tech Income Statement For the Month Ended March 31 Actual students Actual courses Revenue Expenses: Faculty wages 1,790 89 $ 401,340 213,950 61,590 Course supplies Administrative expenses Total expense Net operating income Required: 79,562 355,102 $ 46,238 Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for March. Label each variance as favorable (F) or unfavorable (U). Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Sager
![Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely
student and course. The school uses the following data in its budgeting:
Revenue
Faculty wages
Course supplies
Administrative expenses
Fixed
Variable
element per element per
Variable
element per
month
student
$ 0
$ 288
course
$ 0
$ 0
$ 0
$ 0
$ 26,400
$ 50
$ 25
$ 3,080
$ 38
$ 50
In March, the school budgeted for 1,890 students and 86 courses. The school's income statement showing the actual results for the
month appears below:
Roberds Tech
Income Statement
For the Month Ended March 31
Actual students
Actual courses
Revenue
Expenses:
Faculty wages
Course supplies
Administrative expenses
Total expense
Net operating income
Required:
1,790
89
$ 401,340
213,950
61,590
79,562
355,102
$ 46,238
Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for
March. Label each variance as favorable (F) or unfavorable (U).
Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero
variance). Input all amounts as positive values.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F10219a8e-1b36-4dab-aecc-06263a5f6099%2Fd565d496-84dd-4156-8c58-b8b07658bc5a%2F1vatfjj_processed.jpeg&w=3840&q=75)
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