Hello, I really need some help. This is the excel temple.

AutoSave . OFF 1 Flexible budget project_Student Version_ACCU 325(3) Q Q v Home Insert Draw Page Layout Formulas Data Review View Share Comments Calibri (Body) 11 " A" A " ab Wrap Text General Insert v 2 x AY- O. Paste B I U ~ ~ |DAY x Delete v Merge & Center $ ~ % 9 68 98 Conditional Format Cell Format X VF Sort & Find & Ideas Sensitivity Formatting as Table Styles Filter Select BT C E F G M N P Q S W AA AB AC AD AE Flexible Budget Performance Report Project Kelsey's Frozen Confectionaries buys and distributes single-serve ice cream treats to convenience stores, ballparks, and amusement parks. In this project, you will create 1) a master budget performance report, and 2) a flexible budget performance report for Kelsey's Frozen Confectionaries. Your performance reports should be developed in such a way that any changes to the original assumptions will correctly ripple through the entire spreadsheet. After developing the performance reports, you will answer questions about the variances and determine whether the variances are consistent with management's explanation about operational changes that took place during the period. 12 18 Part 1) DIRECTIONS for Master Budget Performance Report: 19 20 1) Use the budget assumptions, along with Excel formulas, to populate the Master Budget column. Note: Your formulas must work such that if 21 ANY of the budget assumptions change, the new assumptions ripple through the entire budget. Part of your grade will be based on whether you correctly formulated the cells. Do NOT TYFE A NUMBER IN ANY CELL!!! 22 23 21 Use a formula to calculate the "variance" in cell H7: (Actual - Budget). Copy and paste (or drag) the formula to the rest of the cells in the column. Leave as positive or negative, rather than absolute values. 3) Use a formula to calculate the "Variance percentage". NOTE: The percentage is the variance as a percent of the Master Budget. Copy and paste (or drag) the formula to the rest of the cells in the column 4) Format cells appropriately. Attention to detail look more professional. [For example, percentages shown as %, dollar signs using the accounting or currency format, underlines and double underlines where appropriate, zero decimal places for dollar amounts, etc.,). 5) Use the "If" statement function to show the variances as U or F. The "If" statement can be found under "Formulas, Logical". Ex =IF(H7>=0,"F","U"). This formula means: if cell H7>0 or H7=0, then mark as "F"; If not greater than or equal to O, mark as "U". Be careful w revenues and expense variances since they should be opposite of one another. ALSO- The formula you use should mark any variance of "0" as an "F" since a zero variance means that budget expectations have been met. After using the function, check each line to make sure It is going In the direction you believe it should go. 6) Check your answers using the following check figures: Budgeted CM= $301,000; Budgeted Op Inc. = $211,000; Variance for Commissions = $8,685; Variance percentage for Commissions = 17.4 %, Unfavorable. 7)Use management by exception to determine which variances to investigate. HINT: In column K, use the "if function", along with "Absolute 41 value function" to find the variances that are larger than the decision rule. Also, since the decision rule is in 821 and you want Excel to always compare to B21, you need to make it an absolute reference: $B$21. For example, =IF[ABS(17)>($8521),"yes"."no"). After using the function, check each line to see whether your formula worked properly. 8| Center the U/F and Yes/No In the middle of the columns for easier readability. 91 Now check to see if everything ripples through the budget if you change an assumption. Try changing the assumed sales volume to 20,500 and Shipping expense to $2.10 per case. You should have a new total variance for operating income of $21,287, 9.8% variance, F, No. 10) Change the sales volum se assumption back to $2.00. Part 2) DIRECTIONS for Flexible Budget Performance Report: 1) Copy and Paste all of the line items (account names) from the master budget perf report. ice report into the Flexible Budget Performance 2) Copy and Paste all of the actual figures to the actual mance report. 3) Formulate the Master Budget figures by referencing the appropriate cells in the master budget performance report (e.g.=87). By doing so, if Directions A Performance Report A Analysis- page 1 A Analysis- page 2 A Grading Rubric + + 75%AutoSave . OFF 1 Flexible budget project_Student Version_ACCU 325(3) Q Q v Home Insert Draw Page Layout Formulas Data Review View Share Comments Calibri (Body) 11 " AA" ab Wrap Text v General Insert v Paste B I U ~ | ~| DAY EEE x Delete v 2 x AY- O. Merge & Center $ ~ % 9 68 98 Conditional Format Cell Format v Sort & Find & Ideas Formatting as Table Styles X VF Sensitivity Filter Select 18 X V fx M P W AA AC AD AE 32 =IF(H7>=0,"F","U"). This formula means: if cell H7>0 or H7=0, then mark as "F"; If not greater than or equal to O, mark as "U". Be careful with revenues and expense variances since they should be opposite of one another. ALSO- The formula you use should mark any variance of "0" as 34 an "F" since a zero variance means that budget expectations have been met. After using the function, check each line to make sure It is going 35 In the direction you believe it should go. 6) Check your answers using the following check figures: Budgeted CM= $301,000; Budgeted Op Inc. = $211,000; Variance for Commissions = $8,685; Variance percentage for Commissions = 17.4 %%, Unfavorable. 40 7)Use management by exception to determine which varlances to investigate. HINT: In column K, use the "if function", along with "Absolute value function" to find the variances that are larger than the decision rule. Also, since the decision rule is In 821 and you want Excel to always compare to B21, you need to make it an absolute reference: $8$21. For example, =IF[ABS(17)>[$8$21],"yes"."no"). After using the function, check each line to see whether your formula worked properly. 8] Center the U/F and Yes/No In the middle of the columns for easier readability 91 Now check to see if everything ripples through the budget if you change an assumption. Try changing the assumed sales volume to 20,500 and Shipping expense to $2.10 per case. You should have a new total variance for operating income of $21,287, 9.8% variance, F, No. 10) Change the sales volume assumption back to $20,000 and the shipping expense assumption back to $2.00. Part 2) DIRECTIONS for Flexible Budget Performance Report: report. 1) Copy and Paste all of the line items (account names) from the master budget performance report into the Flexible Budget Performance 2) Copy and Paste all of the actual figures to the actual column of the Flexible Budget Performance report. 3) Formulate the Master Budget figures by referencing the appropriate cells in the master budget performance report (e.g.=87). By doing so, if any assumptions change, they will ripple through BOTH performance reports. 4) Build the Flexible Budget by using the ACTUAL SALES VOLUME achieved along with the original budget assumptions. This is very similar to uilding a master budget, except you are using actual sales volume. Assume the actual sales volume achieved is In the same relevant range as the original budget assumptions. 5) Try using the "accounting" or "currency" settings to get dollar signs, commas, and brackets on negative numbers. Add underlines and double underlines as needed. Remove any decimals. 6) Head the appropriate column for the Volume Variance and then use Excel formulas to populate the cells in that column (e.g., +133-133)- Once you get the first cell done, copy and paste the formula to the other cells. 72 7) Head the appropriate column for the Flexibl column for the Flexible Budget Variance and then use Excel formulas to populate the cells in that column (c.g. +F33- H33). Again, copy and paste the formulas to the other cells. 8) Use the following check figures to check your formulas so far. Shipping Expense: $44,213 $1,293 $42,920 $2,920 $40,000 9) Format cells appropriately. Attention to detail makes a report look more professional. (For example, dollar signs using the accounting or currency format, underlines and double underlines where appropriate, zero decimal places for dollar amounts, etc.,). 10)To save time, we won't add the U and F designations to the flexible budget performance report. However, you'll need to mentally figure out which way they go. The Interpretation of the volume variance is a little problematic because it compares two budgets, rather than budget vs. a U or F. al HINT: Think of the MASTER BUDGET as the company's target when determinin en determining whether the volume variance should be designated as 11) Complete analysis- page 1. 12) Complete analysis- page 2. 13) Check report against grading rubric. 91 A Directions Performance Report Analysis- page 1 Analysis- page 2 Grading Rubric + + 75%AutoSave . OFF 1 Flexible budget project_Student Version_ACCU 325(3) Q Q v Home Insert Draw Page Layout Formulas Data Review View Share Comments Calibri (Body) 11 A" A" = 2 Wrap Text General Insert v x Delete v 2 x AY- O. Paste E Merge & Center v $ ~ % " Conditional Format Cell Formatting as Table Styles Format X V F Sort & Find & Ideas Sensitivity Filter Select D24 4 X V fx A B C D E F G H I K WN Budget assumptions: Kelsey's Frozen Confectionaries Master Budget Performance Report 4 Volume 20,000 cases For the month ended June 30 5 Sales Revenue S 50.00 per case MASTER 6 Percent sold on credit 90% percent of sales ACTUAL BUDGET VARIANCE VAR. % For U Investigate? 7 Volume (in cases) 21,460 Variable Expenses: 9 CGS 30.00 per case Sales Revenue S 1,131,020 10 Sales Commission 2.50 per case Less Variable Expenses: 11 Shipping Expense 2.00 per case Cost of Goods Sold 682,880 12 Bad Debt Expense 1.00% percent of credit sales Sales Commissions 58,685 13 Shipping Expense 44,213 14 Fixed Monthly Expenses: Bad debt expense 16,930 15 Salaries 40,000 Contribution Margin 328,312 16 Lease on Distribution center 17,000 Less Fixed Expenses: 17 Depreciation on fleet & Equip 12,000 Salaries 43,000 18 Advertising 10,000 Lease on Distn center 15,500 19 Office rent, phone, internet 11,000 Deprec. on fleet/equip 12,000 20 Advertising 7,750 21 Management by exception 15% Investigation rule Office rent, phone, net 12,300 22 Operating Income 237,762 23 HINTS on EXCEL: 24 1) If you get a series of hashmarks (######) it just means your column width is not wide enough to accomodate the number. Increase column width 25 and/or delete extra decimal places. 26 2. To add numbers, put your cursor on the cell where you want the answer 27 to be. Then keystroke the addition sign (+) and then click on the cell you want add, then keystroke the addition sign again (+) and click on the second Should follow the same format above in terms of account titles/subtitles. Kaleau's Crayon Confactinnarine Directions Performance Report A Analysis- page 1 A Analysis- page 2 A Grading Rubric + + 132%AutoSave . OFF 1 Flexible budget project_Student Version_ACCU 325(3) Q Q v Home Insert Draw Page Layout Formulas Data Review View Share Comments Calibri (Body) 11 A" A" 2 Wrap Text Insert v = General x Delete v 2 x AY- O. Paste BIU VOA~ E Merge & Center v $ ~ % " Conditional Format Cell X V F Find & Ideas Format Sort & Sensitivity Formatting as Table Styles Filter Select D24 4 X VS. A B C D E F G H K 23 HINTS on EXCEL: 24 1) If you get a series of hashmarks (######) it just means your column width is not wide enough to accomodate the number. Increase column width 25 and/or delete extra decimal places. 26 2. To add numbers, put your cursor on the cell where you want the answer to be. Then keystroke the addition sign (+) and then click on the cell you want add, then keystroke the addition sign again (+) and click on the second Should follow the same format above in terms of account titles/subtitles. 28 cell you want to add. Continue in the same fashion for multiple cells. Use Kelsey's Frozen Confectionaries 29 the subtraction sign (-) for subtracting cells. If you have an array of cells to Fexible Budget Performance Report 30 add, you can use the AutoSum button. For the month ended June 30 31 3. To multiply, use the * symbol. To divide, use the / symbol. 4. Make use of copy/paste commands when you want similar forumulas in FLEXIBLE 32 different cells. ACTUAL BUDGET MASTER BUDGET 33 Enter text 34 5. Always check the logic of your results after entering formulas to make 35 sure the spreadsheet is doing what you really want it to do. Enter text 36 Enter text 37 Enter text 38 Enter text 39 Enter text 40 Enter text 41 Contribution Margin 42 Enter text 43 Enter text 44 Enter text 45 Enter text 46 Enter text 47 Enter text 48 Operating Income 49 Directions Performance Report Analysis- page 1 A Analysis- page 2 Grading Rubric + + 132%AutoSave . OFF 1 Flexible budget project_Student Version_ACCU 325(3) Q Q v Home Insert Draw Page Layout Formulas Data Review View Share Comments Calibri (Body) 11 Wrap Text General Insert v x Delete v 2 x AY- O. Paste BIUVV LAV Merge & Center v $ ~ % " Conditional Format Cell Format X VF Sort & Find & Ideas Sensitivity Formatting as Table Styles Filter Select A16 X V fx How much of the master budget variance for CGS was caused by some factor OTHER THAN volume? A B C D 1 Dollar amount For U Possible reason UN Answer the following questions (dollar amount; For U?; Reason, when asked) What is the flex budget variance for operating income? What is the volume variance for operating income? What do the flex budget variance and volume variance for operating income sum to? Does this equal the total master budget variance Yes or No? Should it always sum (or net) to the total master budget variance, even if one is U and one is F? Yes or No? How much of the master budget variance for Sales was caused by an UNANTICIPATED increase in volume? 11 2 How much of the master budget variance for Commission Expense was caused by an UNANTICIPATED increase in volume? 13 14 How much of the master budget variance for Advertising Expense was caused by an UNANTICIPATED increase in volume? 15 16 How much of the master budget variance for CGS was caused by some factor OTHER THAN volume? What could account for this variance? Enter reason here 17 18 19 How much of the master budget variance for Sales Revenue was caused by some factor OTHER THAN volume? What could account for this variance? Enter reason here 20 21 22 How much of the master budget variance for Advertising Expense was caused by some factor OTHER THAN volume? What could account for this variance? Enter reason here 23 24 25 26 27 28 29 30 31 Directions A Performance Report A Analysis- page 1 A Analysis- page 2 Grading Rubric + + 119%AutoSave . OFF Flexible budget project_Student Version_ACCU 325(3) Q Q v Home Insert Draw Page Layout Formulas Data Review View Share Comments Calibri (Body) 11 A" = = 2 Wrap Text v General Insert v x Delete 2 x AY- O. Paste E Merge & Center v $ ~ % " $68 8.8 Conditional Format Cell Format v X VF Sort & Find & Ideas Sensitivity Formatting as Table Styles Filter Select D34 * X V fx A B C D E F G H 17 18 19 20 21 Income Statement line item Consistent Inconsistent Unexplained 22 23 All sales volume variances 24 25 Flexible budget variances: 26 Sales Revenue 27 Cost of Goods sold 28 Commission expense 29 Shipping Expenses 30 Bad debt expense 31 Salaries expense 32 Lease of distribution center 33 Depreciation of fleet & Equip. 34 Advertising expense 35 Ofice rent, phone, internet 36 37 Directions Performance Report Analysis- page 1 Analysis- page 2 Grading Rubric + Ready - + 200%AutoSave . OFF Flexible budget project_Student Version_ACCU 325(3) Q Q v Home Insert Draw Page Layout Formulas Data Review View Share Comments Calibri (Body) 11 A A = = 2 Wrap Text v General Insert v x Delete v 2 x AY- O. Paste BIU V V LA~ E Merge & Center $ ~ % " Conditional Format Cell Sort & Ideas Styles X V F Find & Filter Sensitivity Formatting as Table Format v Select D34 * X V fx A B C D E F G H Managers and auditors always analyze the variances between actual and budget. Say you were auditing this client and they gave you the foll (below). Is the story consistent with the overall pattern of variances? Which elements of the story are consistent with the explanations? inconsistent, or left unexplained? Be sure to analyze every line item on the budget. Client Story: In order to motivate our sales force to increase sales, we decided to increase our commissions and salaries and increase mark same time, our supplier increased its prices, and we felt we could pass that cost increase on to our customers in the form of price increase. the additional pressure to make sales, coupled with the increased sales price, we had to loosen credit terms on sales (extend more credit customers). We also had to lease a little more distribution space and acquire another truck to handle the volume increase. Our shipping e 10 gasoline used for deliveries. Luckily, gas prices went down from what we originally expected this year. 11 12 In the table below, classify each account on the budget according to whether the variances in the performance report are consistent, inconsistent, or the client's story. Place an "X" in the appropriate column. 13 14 15 16 17 18 19 20 21 Income Statement line item Consistent Inconsistent Unexplained Directions Performance Report Analysis- page 1 A Analysis- page 2 Grading Rubric + Ready - + 199%