Assignment 08 Bu 330 Accounting for Managers

ASSIGNMENT 04

BU330 Accounting for Managers Geoff Smartt AC13007571

Actual Flexible Master

Results Variance Budget Variance Budget

Tickets sold 110,000 0 110,000 -10,000 (U) 120,000

Revenue--tickets $ 880,000 110000 ( F) 770,000 -70,000 (U) $ 840,000

Revenue--concessions 330,000 -110000 (U) 440,000 -40,000 (U) 480,000

Total revenue $1,210,000 0 1,210,000 -110,000 (U) $1,320,000

Controllable variable costs

Concessions 99,000 11,000 (F) 110,000 10000 (F) 120,000

Direct labor 330,000 55,000 (F) 385,000 35000 ( F) 420,000

Variable overhead 550,000 -55,000 (U) 495,000 45000 (F) 540,000

Contribution margin $ 231,000 11,000 (U) 220,000 -20000 (F) $ 240,000

Controllable fixed costs

Rent 55,000 0 55,000 0 55,000

Other administrative expenses 50,000 5000 (U) 45,000 0 45,000

Theater operating income $ 126,000 6000 (F) 120,000 -20,000 (U) $ 140,000

2. Burgman was able to show a slight increase in income over the variable budget, however he did not display exceptional ability by...