(Click the icon to view the employee information.) Joy Black has run Healing Maids, a specialty cleaning service for medical and dental offices, for the past 10 years. Her static budget and actual results for April 2017 are shown below. (Click the icon to view the actual and budgeted income statements.) Read the requirements. Requirement 1. How many offices, on average, did Black budget for each employee? How many offices did each employee actually clean? Determine the formula to show how many offices, on average, the employees cleaned. (X = number of offices cleaned by experienced employee, Y = number of offices cleaned by both less experienced employees) (Click the icon for information regarding the formula selections.) ( E X ) + ( F Y ) = B Next, calculate the budgeted and actual number of offices for each employee type. Budgeted Actual number of offices number of offices Experienced employee Less experienced employees 1. 2. 3. How many offices, on average, did Black budget for each employee? How many cars did each employee actually detail? Prepare a flexible budget for April 2017. Compute the sales price variance and the labor efficiency variance for each labor type. What information, in addition to that provided in the income statements, would you want Black to gather, if you wanted to improve operational efficiency? 4. A Contribution margin B Labor costs C Operating income D Revenue E Wage paid to experienced employee per office F Wage paid to less experienced employees per office (Click the icon to view the employee information.) Joy Black has run Healing Maids, a specialty cleaning service for medical and dental offices, for the past 10 years. Her static budget and actual results for April 2017 are shown below. (Click the icon to view the actual and budgeted income statements.) Read the requirements. Requirement 1. How many offices, on average, did Black budget for each employee? How many offices did each employee actually clean? Determine the formula to show how many offices, on average, the employees cleaned. (X = number of offices cleaned by experienced employee, Y = number of offices cleaned by both less experienced employees) (Click the icon for information regarding the formula selections.) ( E X ) + ( F Y ) = B Next, calculate the budgeted and actual number of offices for each employee type. Budgeted Actual number of offices number of offices Experienced employee Less experienced employees 1. 2. 3. How many offices, on average, did Black budget for each employee? How many cars did each employee actually detail? Prepare a flexible budget for April 2017. Compute the sales price variance and the labor efficiency variance for each labor type. What information, in addition to that provided in the income statements, would you want Black to gather, if you wanted to improve operational efficiency? 4. A Contribution margin B Labor costs C Operating income D Revenue E Wage paid to experienced employee per office F Wage paid to less experienced employees per office
