Chapter 9: Applying Excel: Excel Worksheet (Part 1 of 2) 2 Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell B30 enter the formula =B20" Notes: ces In the text, variances are always displayed as positive numbers. To accomplish this, you can use the ABS function in Excel. For example, the formula in cell 31 would be *ABS(E31-B31)". Cells D31 through D39 and G31 through G39 already contain formulas to compute and display whether variances are Favorable or Unfavorable. Do not enter data or formulas into those cells--if you do, you will overwrite these formulas. After entering formulas in all of the cells that contained question marks, verify that the amounts match the numbers in the example in the text. Check your worksheet by changing the revenue in cell 04 to $16.00; the cost of ingredients in cell 05 to $6.50; and the wages and salaries in cell B6 to $10.000. The activity variance for net operating income should now be $850 U and the spending variance for total expenses should be $410 U. If you do not get these answers, find the errors in your worksheet and correct them. Save your completed Applying Excel form to your computer and then upload it here by clicking "Browse." Next, click "Save." You will use this worksheet to answer the questions in Part 2 $16.00 g $6.50 Data Revenue Cost of ingredients Wages and salaries Utilities Rent Miscellaneous $0.20 9 $10,400 $800 $2,200 $600 $0.80 9 Actual results: Revenue Cost of ingredients Wages and salaries Utilities Rent Miscelaneous $27,920 $11,110 $10,000 $1,080 $2 200 $2.240 Planning budget activity Actual activity 1.800 meals served 1.700 meals served Enter a formula into each of the cells marked with a 7 below Review Problem: Variance Analysis Using a Flexible Budget Construct a flexible budget performance report Actual Revenue and Spending Variances Results Flexible Budget ? 2 Activity Variances Planning Budget ? ? ? ? ? 7 ? 2 ? 9 0 Meals served 1 Revenue 2 Expenses 3 Cost of ingredients 14 Wages and salaries 35 Us 36 Rent 37 Miscellaneous 38 Total expenses 39 Net operating income 40 41 42 2 2 ? ? 2 ? 2 ? ? ? ? 7 ? ? 2 2 7 ? ? 2 ? 2 ? 7 ? ? Requirement 2: Revise the data in your worksheet to reflect the results for the subsequent period as shown below: B D E $ $ 16.50 6.25 9 $ $ $ 0209 10,400 800 2,200 800 $ $ $ 0809 A 1 Chapter 9: Applying Excel 2 3 Data 4 Revenue 5 Cost of ingredients 6 Wages and salaries 7 Utilities 8 Rent 9 Miscellaneous 10 11 Actual results: 12 Revenue 13 Cost of ingredients 14 Wages and salaries 15 Utilities 16 Rent 17 Miscellaneous 18 19 Planning budget activity 20 Actual activity $ $ $ 29,715 11,310 10,480 1.200 2,200 2,035 $ $ $ 1,700 meals served 1,800 meals served a. What is the activity variance for revenue? (Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (i.e., zero variance)). The amount of the activity variance for revenue b. What is the spending variance for the cost of ingredients? (Indicate the effect of each variance by selecting for favorable, "U" for unfavorable, and "None" for no effect (.e. zero variance) The amount of the spending variance for the cost of ingredients c. What is spending variance for wages and salaries? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance)). The amount of the spending variance for wages and salaries ces d. What is spending variance for total expenses? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance)). The amount of the spending variance for total expenses
