(Company name) Operating Budget for the period Jan - Dec '21 (Company name) Operating Budget for the period Jan - Dec ' 21 1 2 Quarters Sales budget Sales Commercial Sales residential Total sales Direct material budget Variable costs commercial Variable costs residential Total variable costs Labour budget Commercial Residential Total labour Fixed Overhead: Total Budget for the year 2021: The budget for the year 2021 was prepared in December 2020 and had the following components: Revenue: 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: For 2021, the budgeted selling price per hours were: Direct Labour expense: SCS will pay its employees an hourly rate of $22 for the entire year. Cleaning supply usage: The budgeted usage is 0.25 litre / labour hour for the commercial segment and 0.15 litre/ labour hour for the residential segment. This is constant for the entire year. Cleaning supply expense: Budgeted expense is $4.50 per litre for the entire year. (Company name) Flexible budget for the period Jan - Dec '21 1 2 Quarters Sales budget Sales Commercial Sales residential Total sales Direct material budget Variable costs commercial Variable costs residential Total variable costs Labour budget Commercial Residential Total labour Fixed Overhead: Total Direct Labour expense: SCS paid its employees an hourly rate of $21 for the entire year. Cleaning supply usage: The actual usage was 0.18 litre / labour hour for the commercial segment and 0.09 litre/ labour hour for the residential segment. This was constant for the entire year. Cleaning supply expense: Actual expense was $5.50 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 was $6,200 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. Actual expense was $9,200 per quarter and was the same for all four quarters. Gas: Actual expenditure on gas was $7,100 and was the same for all four quarters. Maintenance: Actual expenditure on Office Supplies was $1,100 per quarter and was the same for all four quarters. 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 $5,000 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 $9,000 per quarter and is the same for all four quarters. Gas: Budgeted expenditure on gas is $7,000 and is the same for all four quarters. Maintenance: Budgeted expenditure on Office Supplies is $1,000 per quarter and is the same for all four quarters. Actual results for the year 2021. It is now January 7, 2022 and Sparkling Clean Services (SCS) is comparing the actual expenses against their budget. Here is what they found. Revenue: For 2021, the actual sales hours were: For 2021, the actual hourly revenue was