Exam Content

For this assignment, refer to the scenario located in
“Problems – Series A,” section 8-19A of Ch. 8, “Performance Evaluation,“ of
Fundamentals of Managerial Accounting Concepts.

This scenario puts you in charge of preparing a budget for the Redmond Management Association annual public relations luncheon.

Read
the scenario in the textbook and complete the activity below.

Use
Microsoft®
Excel®—showing all work and formulas—to complete the following:

• Prepare a flexible budget.


• Compute the sales volume variance and the variable cost volume variances based on a comparison between the master budget and the flexible budget.


• Compute flexible budget variances by comparing the flexible budget with the actual results.

Createa 6- to 8-slide presentation for the budget committee meeting. Complete the following in your presentation:

• Summarize the results of the sales volume and variable cost volume variances computations based on the comparison between the master budget and the flexible budget.


• Summarize the results of the flexible budget variances computations based on the comparison between the flexible budget and the actual results.


• Justify the favorable or unfavorable budget variances.


• Since this is a not-for-profit organization, address why anyone should be concerned with meeting the budget.


• Make recommendations for what can be done differently to stay on budget for future luncheons. Provide specific examples to support your recommendations.