Actual Budget Variance

Revenues 3264000 3231900 32100

Expenses:
Consultant's Hiring and Firin 2029050 1748250 280800
Operating Expense 938560 877300 61260
Total Expense 2967610 2625550 342060

Operating Profits 296390 606350 ($309,960)

Profit Percentage 9.08% 18.76% -0.0968083372

Operating Statistics
A No. of consultants 113 105
B Hours Supplied 50850 47250
C Hours Billed 39000 35910
D Average Billing rate 83.69 90

B/A 450 450

Rev/C 83.6923076923077 90

Since B/A is same for Actual and budgeted we use No. of consultants as basis for flexible budgeting

Expense Items: Budget Q2 2000

Actual Budget % Variable

Advertising and promotion $22,100 $15,100 0%

Administrative and support s 225,000 191,250 80%
Information systems 126,200 120,000 80%
Depreciation 23,400 22,700 0
Dues and subscriptions 11,800 13,100 80%
Education and training 36,200 38,900 80%
Equipment leases 23,500 22,440 25%
Insurance 33,600 32,200 0
Professional services 39,500 34,700 0
Office expense 42,100 36,550 100%
Office supplies 86,200 89,600 80%
Postage 27,300 24,700 80%
Rent - real estate 117,260 117,260 0
Telephone 40,000 38,500 100%
Travel and entertainment 57,800 56,300 100%
Utilities 26600 24000 25%
Total $938,560 $877,300

Inference: FB has lower variance compared to normal budget here

Info systems is favourable under FB but unfavourable under normal
Telephone is favourable under FB but unfavourable under normal
Travel and Ent. is favourable under FB but unfavourable under normal
 FB Actual-FB
F 3478140 ($214,140) U

U 1881450 147600 U
U 944141.9 ($5,582) F
U 2825592 142018.09524 U

652548.1 ($356,158)

sis for flexible budgeting

Actual-Budget FB Actual-FB

$7,000 U 15100 $7,000 U

$33,750 U 202907.14286 $22,093 U
$6,200 U 127314.28571 ($1,114) F
$700 U 22700 $700 U
($1,300) F 13898.47619 ($2,098) F
($2,700) F 41271.047619 ($5,071) F
$1,060 U 22867.428571 $633 U
$1,400 U 32200 $1,400 U
$4,800 U 34700 $4,800 U
$5,550 U 39334.761905 $2,765 U
($3,400) F 95061.333333 ($8,861) F
$2,600 U 26205.52381 $1,094 U
$0 U 117260 $0 U
 $1,500 U 41433.333333 ($1,433) F
$1,500 U 60589.52381 ($2,790) F
$2,600 U 24457.142857 $2,143 U
$61,260 U $21,260 U

ormal budget here

urable under normal
rable under normal
vourable under normal