The CEO of Buckstars Is Interested in Reviewing the May

question 60

Essay

The CEO of Buckstars is interested in reviewing the May 20xx performance report for Cost Center 7-11.Prepare a brief performance report for the CEO utilizing the following information for Cost Center 7-11.Line items should be broken out between direct materials,direct labor,variable overhead,and fixed overhead.
$\begin{array}{lrrr}&& \text { Flexible } & \text { Master Budget } \\&\text { Actual Results } & \text { Budget } &\\\text { Ground coffee } & \$ 1,350 & \$ 1,200 & \$ 1,270 \\\text { Flavored syrups } & 2,300 & 2,320 & 3,000 \\\text { Milk } & 850 & 800 & 950 \\\text { Servers' wages } & 3,500 & 3,800 & 3,600 \\\text { Supervisor's salary } & 5,000 & 5,000 & 5,000 \\\text { Espresso machine repair } & 50 & 120 & 150\end{array}$

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Definitions:

Cash Receipts

The collection of money (currency, checks, wire transfers) by a business from its customers or other parties.

Inventory Purchases

The total cost associated with buying goods and materials kept in stock for the purpose of resale or production in a given period.

Administrative Expenses

Costs related to the general operation of a company, such as salaries of executive personnel, legal fees, and insurance.

Minimum Cash Balance

The least amount of cash that a company aims to hold in its accounts to meet immediate operational needs.