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Questions
Questions

22108 Accounting and Accountability - Spring 2025 3. PRACTICE Final Exam - 22108 - Autumn 2022

Multiple fill-in-the-blank

Question 1A - Variance analysis (time recommendation: 16 minutes) You have been provided with the following information from BBB and have been asked to conduct a variance analysis - specifically a flexible budget, flexible budget variance and whether variances are favourable (mark with an F) or unfavourable (mark with a U). (Each box is worth 0.27586 marks) Budgeted burgers to be sold: 5500 burgers at $12.50 eachDirect material    $2.50 per burgerDirect labour    $1.80 per burgerVariable overhead    $0.50 per burgerFixed overhead    $5800Variable selling and admin. $1.25 per burger (burger packaging)Fixed selling and admin  $1900Actual burgers sold: 7000 burgers To enter each amount in the table, please enter just the number in whole dollars (no cents). No commas or dollar signs or spaces after the number. Negative variances should have a minus before the number. Enter only the number of dollars, do not enter the dollar,  "$" , symbol. Therefore if your answer is "$10,000", enter only "10000". If your answer is "-$1,000", enter "-1000". This is an auto-marked question and your answers must be just the number. Where you are asked for the variance - please enter only F or U in the response box. Variance analysis for BBB Static budget Flexible budget Actual  Flexible budget variance Favourable or unfavourable Total sales 68750 [Fill in the blank] 80500 [Fill in the blank] [Fill in the blank] Less COGS   Direct materials 13750 [Fill in the blank] 24500 [Fill in the blank] [Fill in the blank]   Direct labour 9900 [Fill in the blank] 17500 [Fill in the blank] [Fill in the blank]   Variable OH 2750 [Fill in the blank] 7000 [Fill in the blank] [Fill in the blank]   Fixed OH 5800 [Fill in the blank] 7500 [Fill in the blank] [Fill in the blank] GROSS PROFIT 36550 [Fill in the blank] 24000 [Fill in the blank] [Fill in the blank]   Variable S&A 6875 [Fill in the blank] 10500 [Fill in the blank] [Fill in the blank] Fixed S&A 1900 [Fill in the blank] 2500 [Fill in the blank] [Fill in the blank] NET PROFIT 27775 [Fill in the blank] 11000 [Fill in the blank] [Fill in the blank]   The business has also provided you with the following additional pieces of information: The business had a massive increase in sales after a visit to BBB by Chris Hemsworth and some other actors who were in Western Sydney filming for the latest Marvel project. The business saw a 20% increase in the cost of fresh ingredients (beef mince, salad and buns) due to shortages because of the floods and inflation To keep up with demand, new less experienced staff were brought on board To take advantage of the new social media exposure, BBB decided to spend more on promoting social media posts and putting their branding more clearly on the boxes used to deliver the burgers to customers.

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Approach Analysis
The question presents a variance analysis task for BBB, requiring the construction of a static budget, a flexible budget (based on actual output), the actual results, and the flexible budget variance (F/B variance) with F or U indicators. Since the provided data in the prompt is a large table with many blanks and the accompanying answer list appears to be a set of filled values (and includes both numbers and U/u entries), I will first outline the standard method to compute each item, and then show concrete calculations for the key entries that are typically required. If the actual assignment expects a particular interpretation (e.g., whether fixed overhead is included in cost of goods sold for gross profit), you should align with that convention. I’ll also note where interpretations can lead to different numbers. Key inputs given: - Static (budgeted) burgers to be sold: 5,500 at price $12.50 each - Variable elements per burger: Direct materials $2.50, Direct labour $1.80, Variable overhead $0.50 - Fixed overhead: $5,800 - Variable selling and admin (packaging): $1.25 per burger - Fixed selling and admin: $1,900 - Actual burgers sold: 7,000 - Required to enter numbers in dollars (no $ sign) and F/U for variances Step 1: Calculate the flexible budget (based on actual quantity of burgers, 7,000) - Flexible sales revenue = 7,000 × 12.50 = 87,500 - Flexible direct materials cost = 7,000 × 2.50 = 17,500 - Flexible direct labour cost = 7,000 × 1.80 = 12,600 - Flexible variable overhead = 7,000 × 0.50 = 3,500 - Flexible variable selling and admin (packaging) = 7,000 × 1.25 = 8,750 - Flexible fixed overhead remains fixed at 5,800 - Flexible fixed selling and admin remains fixed at 1,900 ......Login to view full explanation

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