16.13 Comprehensive review of Chapters 15 and 16, static budget.
(15 min)
1 Actual
results
(1)
Static-budget
amounts
(2)
Variances
(3)
Revenues Circulation Advertising
SFr154,000 394,600 548,600
SFr140,000 360,000 500,000
SFr14,000 FF F Costs Direct materials Direct labour costs Variable indirect costs Fixed indirect costs Operating income
224,640 50,112 63,936 97,000 435,688
SFr112,912 180,000 45,000 60,000 90,000 375,000
SFr125,000 44,640 U
5,112 U
3,936 U
7,000 U
60,688 U
SFr12,088 U
2
L’Evénement du Dimanche had an increase in total revenues of SFr 48,600 above that budgeted. This arose from both a favourable circulation variance (SFr14,000 increase or 28,000 extra copies sold at SFr0.50 per copy) and a favourable advertising revenue variance of SFr34,600. The actual costs are SFr 60,688 above budget. The largest source of this increase comes from direct materials. The sources of this increase include (a) 20,000 extra copies printed and (b) quality problems leading to many pages being unusable. The budgeted print pages for 320,000 copies of 50 pages each was 16,000,000 pages an extra 1,280,000 pages were used above this budgeted amount.
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