Question

The Snow City Public Works Department asked you to conduct a variance analysis of its January expenditures for snow plowing. The Department expected that there would be about 99 dispatches of snowplow truck during January but found that the Department actually dispatched snowplow trucks 111 times. The budgeted number of packs of salt per truck was 56 but each truck actually used 62 packs of salt per truck. The budgeted cost per pack of salt was $14 but the actual purchase price was $10. Conduct a variance analysis for the BSAS in an Excel file and show flexible budget, Volume and Quantity Adjusted (VQA) budget, actual budget, as well as original budget. Remember that all budgets should provide details on volume, quantity, price, and total budgets. In addition, you should also provide variances associated with volume, quantity, price, and total budgets and show whether they are favorable or unfavorable. Each relevant cell in your Excel file should show accurate formulas. Briefly summarize your findings to report to the director of the Department.

Answer 1