Performance Report for Revenue and Spending Variances Assignment | Top Universities

Question 3 (10 Marks) Bawadi Nursery generates revenues through offering kindergarten services. During February 2019, the Nursery budgeted for 3,300 children. The actual number of children were, however, 3,340. The Nursery has provided you with the following budget data for February: Variable element per child Fixed clement per month Revenue $23.60 Wages and salaries $3,500 $7.20 Foods and supplies Facility 1,500 13.3 9,500 4.7 expenses Administrative 6,800 0.40 expenses Total expenses $37,200 SIL.10 Students 3.300 The actual results for February were as follows Revenue $124,830 Wages and salaries Foods and supplies Facility expenses Administrative $28,818 $44,652 $24,218 $7,886 expenses Students 3.340 Required: Prepare a planned budget (static budget) for Bawadi Nursery for February (2 Marks)

a. Prepare a performance report for revenue and spending variances for February indicating whether (7 Marks).

b. they are Favourable (F) or Unfavourable (U) When is a planned budget (static) performance report useful for assessing performance? (1 Mark) 2 c. 10 Ans. Get Accounting Homework Help Today.