Asked by Sheryar Gillani on May 16, 2024
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Hislop 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:
In June, the school budgeted for 1,910 students and 111 courses. The school's income statement showing the actual results for the month appears below:
Required:Prepare a report showing the school's revenue and spending variances for June. Label each variance as favorable (F) or unfavorable (U).
Cost Drivers
Factors that cause a change in the cost of an activity, such as machine hours, labor hours, or material size.
Vocational School
An educational institution that provides training and skills for specific trades or careers, focusing on practical job-related skills.
Revenue Variances
The difference between actual revenue and budgeted or forecasted revenue, indicating if a business is performing above, on, or below expectations.
- Compute deviations in activities and classify them either as positive or negative.
- Interpret income statements to identify variances from budgeted figures.
Verified Answer
LP
Learning Objectives
- Compute deviations in activities and classify them either as positive or negative.
- Interpret income statements to identify variances from budgeted figures.