Problem 1
Complete a performance report for the month of May, 2007 for the Daily Bulletin, a regional newspaper showing four columns:
1. Actual results
2. Budgeted amount
3. Difference: actual result minus budgeted amount
4. Difference as a percentage of budged amount
Use the following data:
Adverting pages sold: 910
Budgeting advertising pages 900
Advertising revenue $4,368,000
Budget advertising revenue $4,410,000
Give the variances for:
1. Number of pages as a dollar and percentage.
2. Total advertising revenue as a dollar and percentage.
3. Average rate per page as a dollar and percentage.
Does the report indicate any cause of managerial investigation?