Actual results for the year 2022. It is now January 7, 2023, and Birch Clean Services (BCS) is comparing the actual expenses against their budget. Here is what they found. Revenue: For 2022, the actual sales hours were: Quarter 1 2 3 4 Actual sales - commercial 22,500 23,500 21,000 22,900 Actual sales - residential 25,900 25,400 23,500 23,200 For 2022, the actual hourly revenue was: Quarter 1 2 3 4 Actual selling price - commercial $48 $48 $48 $48 Actual selling price - residential $46 $46 $46 $46

Direct Labour expense:

BCS paid its employees an hourly rate of $25 for the entire year.

Cleaning supply usage:

The actual usage was 0.31litre / labour hour for the commercial segment and 0.34 litre/ labour hour for the residential segment. This was constant for the entire year.

Cleaning supply expense:

The actual expense was $6.22 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:

Receiving:

Actual expense per quarter was as follows:

Quarter	1	2	3	4
Amount	6,900	6,900	6,900	6,900

Depreciation:

This relates to the depreciation of vehicles used to transport employees to client locations. The actual expense was $10,800 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	8,600	8,600	8,600	8,600

Maintenance:

Actual expense per quarter was as follows:

Quarter	1	2	3	4
Amount	10,900	10,900	10,900	10,900

Unproductive (unbilled) factor:

Cleaning crews had to work 7% over the revenue generating hours to address complaints and do a second cleaning. These hours were not billable to clients, but Birch Clean Services (BCS) would pay the employees for the time they worked. For this assignment, assume that there is no consumption of cleaning materials when this second cleaning was done.

6| P a g e

MGMT 8500 - ASSIGNMENT 3: BUDGET ASSIGNMENT 23W

Required:

Part A:

For this part you will use the template provided in Excel Workbook format. Complete the following steps in sequence:

MGMT 8500 - ASSIGNMENT 3: BUDGET ASSIGNMENT 23W

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 identify calculated variances as favourable (F) or unfavourable (U), you need to use IF formula.

(Company narne) Operating Budget for the period Jan - Decc 21 (Company narne) Operating Budget for the period Jan - Decc 21