A B C D E F G H J K L (Company name) Operating Budget for the period Jan - Dec '21 JU A W N - Quarters 1 2 3 4 Year Marks 18 19 Labour budget 20 Commercial 2 21 Residential 22 Total labour 23 24 Fixed Overhead: 25 Receptionist 2 26 Depreciation 27 Gas 28 Maintenance 29 Total 30 31 Total 8 32 33 34 35 36 37 38 39 40 e Cover page Read this first Static Budget Actual Budget Flexible Budget Var Analysis - Static and Flex Material variances Lab ... (+Background: Sunower Cleaning Services (SFCSJ is a local business in the Tri-cities area. It provides cleaning services to residential households and commercial establishments- Both households and businesses sign contracts with SFCS. As the contractor, SFCS dispatches its crew to the locations. The crew performs the cleaning asper the contracts and reports back to the company main desk. The main desk then prepares the invoiceand sends them to the clients. Clients have one day to pay the invoice. Sales volume can vary from one quarter to the next. In terms of expenses, the main expense for SFCS relates to labour. They pay crew members competitivewages and benets. The wage rate is calculated on an hourly basis and is fixed for the entire year. The next expense item is cleaning supplies. SFCS accounts for cleaning supplies relative to the hours worked. For example, they estimate that cleaning supplies are consumed at a rate of 0.2 litres per labour hour. This is a good measure because the longer it takes for a site to be cleaned, the more the consumption of cleaning supplies. Cleaning supplies are procured from a prominent vendor and the cost is fixed for the entire year. Sometimes clients are not happy about the cleaning services and register a complaint. In that case, the crew is dispatched again for a second cleaning. The hours accruing from such scenarios are not billed to the client as this constitutes a 'service recovery'. However, the crew is paid for such hours. SFCS maintains arecord of these hours and classies them as 'unproductive hours', or 'unbilled hours. This is calculated as a percentage of revenue earning hours (e.g., 10% of revenue generating hours). For the purpose of this assignment, assume that there is no consumption of cleaning materials when this second cleaning isbeing done. Budget for the year 2021: The budget for the year 2021 was prepared in December 2020 and had the following components: Reven Lie: The revenue is calculated as number of hours that the crew works on a site, multiplied by the contracted rate with the client. The hours worked in the residential and commercial segments are shown separately. and there is a total for the combined hours worked. The revenue for each segment is arrived at by multiplying the hours for the segment by the rate. The budget is prepared for four quarters, one to four. For 2021, the budgeted sales hours were: Quarter 1 2 3 4 Budgeted commercial sales in hours Budgeted residential sales in hours 2,300 1.900 2.500 2,900 For 2021, the budgeted selling price per hours were: Quarter 1 2 3 4 Selling price per hour [commercial] Selling price per hour [residential] $42 542 $42 $42 Direct Labour expense: 5ch will pay its emplovees an hourly rate of $23 for the entire year. Cleaning su pplv usage: The budgeted usage is 0.34 litre f labour hour for the commercial segment and 0.27 litre,l labour hour for the residential segment. This is constant for the entire year. Cleaning supply expense: Budgeted expense is $5.40 per litre for the entire year. Fixed overhead: To support the cleaning operations, there are four items of expenditure. These are designated as overheads and their budgeted expenses are as follows: Receptionist: Budgeted expense is $3,500 per quarter and is the same for all four quarters. Depreciation: This relates to the depreciation of vehicles used to transport employees to client locations. Budgeted expense is $7,600 per quarter and is the same for all four quarters. Covid related: Budgeted expenditure on covid related overhead is $6,400 and is the same for all four quarters. Employee Benefit related: Budgeted expenditure on employee benefit related overhead is $1,700 per quarter and is the same for all four quarters. Actual results for the year 2021. It is now January 7, 2022, and Sunflower Clean Services (SFCS) is comparing the actual expenses againsttheir budget. Here is what they found. Revenue: For 2021, the actual sales hours were: Quarter 1 2 3 4 Actual sales - commercial 3,500 3,100 3,600 3,300 Actual sales - residential 2,400 2,100 2,100 2,600 For 2021, the actual hourly revenue was: Quarter 1 2 3 4 Actual selling price - commercial $53 $53 $53 $53 Actual selling price - residential $41 $41 $41 $41Direct Labour expense: SFCS paid its employees an hourly rate of $22 for the entire year. Cleaning supply usage: The actual usage was 0.30litre / labour hour for the commercial segment and 0.25 litre/ labour hour for the residential segment. This was constant for the entire year. Cleaning supply expense: Actual expense was $6.30 per liter for the entire year. Fixed overhead: To support the cleaning operations, there are four items of expenditure. These are designated as overheads and their budgeted expenses are as follows: Receptionist: Actual expense per quarter was as follows: Quarter 1 2 3 4 Amount 3,100 3,100 3,100 3,100 Depreciation: This relates to the depreciation of vehicles used to transport employees to client locations. Actual expense was $8,000 per quarter and was the same for all four quarters. Covid related: Actual expense per quarter was as follows: Quarter 1 2 3 4 Amount 7,000 7,100 5,800 6,000 Employee benefit related: Actual expense per quarter was as follows: Quarter 2 3 4 Amount 1,500 1,800 1,600 1,900 Unproductive (unbilled) factor: Cleaning crews had to work 7% over the revenue generating hours to attend to complaints and do a second cleaning. These hours were not billable to clients, but Sunflower Clean Services (SFCS) would paythe employees for this time they worked. For the purpose of this assignment, assume that there is no consumption of cleaning materials when this second cleaning was done.Required: Part A: For this part you will use the template provided In Excel Workbook format. Complete the following steps in sequence: Step it Spreadsheet tltle Activltv One Input Database Populate the section Adz-324 with data from the above case and develop the budget parameters. Tiivo Input Database Populate the section K4335 with data from the above case and develop the actual parameters. Three Static Budget Populate the section A?:F29 with data from the spreadsheet \"Input Database\" and develop the static budget. Four Actual Budget Populate the section A?:F29 with data from the spreadsheet \"Input Database\" and develop the actual budget. Flve Flexible Budget Populate the section A?:F29 with data from the spreadsheet \"Input Database\" and develop the flexible budget. Six Var Analvsis - Static and Populate the section AS:E26 with data from the Flex spreadsheets \"Static Budget\" and \"Actual Budget\" and develop the static budget variance. Seven Var Analvsis - Static and Populate the section [55326 with data from the Flex spreadsheet\"Actual Budget\" and \"Flexible Budget\" and develop the exible budget varianoe. Eight Material varianoes Using applicable data complete the analysis of Material variances for both the commercial and residential segments. Nine Labour variances Using applicable data complete the analysis of Material variances for both the commercial and residential segments. Other guidelines: Data should be entered in the "Input Database' spreadsheet only. . For all other spreadsheets, you must use cell references, linking data from 'Input Database' or other spreadsheets. Do not enter data or calculations without cell references. . To calculate variances, you need to use 'IF' formula