how to calculate budget parameters and actual parameters

Budget for the year 2020: The budget for the year 2020 was prepared in December 2019 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 2020, the budgeted sales hours were: 1 2 3 4 Quarter Budgeted commercial sales in 2,500 2,700 3,000 2,800 hours Budgeted residential sales in hours 1,000 1,200 900 1,300 For 2020, the budgeted selling price per hours were: 1 2 3 4 Quarter Selling price per hour (commercial) Selling price per hour (residential) $40 $40 $40 $40 $51 $51 $51 $51 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 $4.5 per litre for the entire year. 4 Page MGMT 8500 - ASSIGNMENT 3: BUDGET ASSIGNMENT-F21 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 Maintenance is $1,000 per quarter and is the same for all four quarters. Actual results for the year 2020. It is now January 7, 2021 and Sparkling Clean Services (SCS) is comparing the actual expenses against their budget. Here is what they found. Revenue: For 2020, the actual sales hours were: 1 2 3 4 Quarter Actual sales - commercial Actual sales - residential 2,700 2,800 2,400 1,150 3,000 1,200 1,250 1,000 For 2020, the actual hourly revenue was: 1 2 3 4 Quarter Actual selling price - commercial Actual selling price - residential $45 $45 $45 $45 $50 $50 $50 $50 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 Maintenance was $1,100 per quarter and was the same for all four quarters. Unproductive (unbilled) factor: Cleaning crews had to work 8% over the revenue generating hours to attend to complaints and do a second cleaning. These hours were not billable to clients, but Sparkling Clean Services (SCS) would pay the employees for this time they worked. For the purpose of this assignment, assume that there is no consumption of cleaning materials when this second cleaning was done. M Parameters - budget Parameters - actual 1 2 3 Quarters Quarters 2 1 3 Year Growth % Quarter over quarter change>>> Sales (hours): Actual total sales Actual sales - commercial Actual sales - residential Selling rate (/hr): Actual selling price-commercial Actual selling price-residential Direct labour expense (/hr): Actual Cleaning Supply usage ( litre / labour hour): ): Commercial Residential Actual Cleaning Supply expense ($/litre)); 4 Sales (hours): 5 Budgeted total sales in hours 6 Budgeted commercial sales in hours 7 Budgeted residential sales in hours 8 Selling rate $/hr): 9 Selling price per hour (commercial) 10 Selling price per hour (residential) 11 12 Direct labour expense ($/hr): 13 14 Cleaning Supply usage ( litre / labour hour): 15 Commercial 16 Residential 17 18 Cleaning Supply expense ($/litre)): 19 20 Fixed overhead: 21 Receptionist 22 Depreciation 23 Gas 24 Maintenance 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Actual Fixed overhead: Receptionist Depreciation Gas Maintenance Total no. of hours actually paid to employees Breakdown: Commercial Residential Actual hours worked Direct labour cost Unproductive (unbilled) factor Budget for the year 2020: The budget for the year 2020 was prepared in December 2019 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 2020, the budgeted sales hours were: 1 2 3 4 Quarter Budgeted commercial sales in 2,500 2,700 3,000 2,800 hours Budgeted residential sales in hours 1,000 1,200 900 1,300 For 2020, the budgeted selling price per hours were: 1 2 3 4 Quarter Selling price per hour (commercial) Selling price per hour (residential) $40 $40 $40 $40 $51 $51 $51 $51 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 $4.5 per litre for the entire year. 4 Page MGMT 8500 - ASSIGNMENT 3: BUDGET ASSIGNMENT-F21 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 Maintenance is $1,000 per quarter and is the same for all four quarters. Actual results for the year 2020. It is now January 7, 2021 and Sparkling Clean Services (SCS) is comparing the actual expenses against their budget. Here is what they found. Revenue: For 2020, the actual sales hours were: 1 2 3 4 Quarter Actual sales - commercial Actual sales - residential 2,700 2,800 2,400 1,150 3,000 1,200 1,250 1,000 For 2020, the actual hourly revenue was: 1 2 3 4 Quarter Actual selling price - commercial Actual selling price - residential $45 $45 $45 $45 $50 $50 $50 $50 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 Maintenance was $1,100 per quarter and was the same for all four quarters. Unproductive (unbilled) factor: Cleaning crews had to work 8% over the revenue generating hours to attend to complaints and do a second cleaning. These hours were not billable to clients, but Sparkling Clean Services (SCS) would pay the employees for this time they worked. For the purpose of this assignment, assume that there is no consumption of cleaning materials when this second cleaning was done. M Parameters - budget Parameters - actual 1 2 3 Quarters Quarters 2 1 3 Year Growth % Quarter over quarter change>>> Sales (hours): Actual total sales Actual sales - commercial Actual sales - residential Selling rate (/hr): Actual selling price-commercial Actual selling price-residential Direct labour expense (/hr): Actual Cleaning Supply usage ( litre / labour hour): ): Commercial Residential Actual Cleaning Supply expense ($/litre)); 4 Sales (hours): 5 Budgeted total sales in hours 6 Budgeted commercial sales in hours 7 Budgeted residential sales in hours 8 Selling rate $/hr): 9 Selling price per hour (commercial) 10 Selling price per hour (residential) 11 12 Direct labour expense ($/hr): 13 14 Cleaning Supply usage ( litre / labour hour): 15 Commercial 16 Residential 17 18 Cleaning Supply expense ($/litre)): 19 20 Fixed overhead: 21 Receptionist 22 Depreciation 23 Gas 24 Maintenance 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Actual Fixed overhead: Receptionist Depreciation Gas Maintenance Total no. of hours actually paid to employees Breakdown: Commercial Residential Actual hours worked Direct labour cost Unproductive (unbilled) factor