Part 1) DIRECTIONS for Master Budget Performance Report: 1) Use the budget assumptions, along with Excel formulas, to populate the Master Budget column. Note: Your formulas must work such that if 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 formulate the cells. Do NOT TYPE A NUMBER IN ANY CELL!!! 2) Use a formula to calculate the "variance in cell H7: (Actual - Budget). Copy and paste for use the fall handle to 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 makes a report 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 "it" statement function to show the variances as U or F. The "ir statement can be found under "Formulas, Logical". Example: -IF(H7>-0,"P","U"). This formula means. If cell H7>0 or H70, then mark as "F", If not greater than or equal to 0, mark as "U". Be careful with revenues and expense variances since they should be opposite of one onother. ALSO- The formula you use should mark any variance of "o as an "P" since a zero variance means that budget expectations have been met. After using the function check cach 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=5301,000, Budgeted Op Inc. - 5211,000, Variance for Commissions - 58,685; Variance percentage for Commissions = 17.4 %, Unfavorable 7) Use management by exception to determine which variances to investigate. HINT: In column K, use the function", along with "Absolute value function to find the variances that are larger than the decision rule. Also, since the decision rule is in B21 and you want Excel to always compare to B21, you need to make it an absolute reference: $B$21. For example, IFABS(17)>$B$21),"yes", "no"). After using the function, check each line to see whether your formula worked properly. 8) Use the Conditional Formatting feature to automatically highlight any variance that says "yes" to investigate. First, select all of the answers in the investigate?" column with your cursor Next select "Conditional formatting from the home tab on the ribbon. From the drop-down choices select "highlight cells rules" then "Text that contains...". A dialogue box will open. Type in "yes" as the text you want. Leave the default highlight color, or choose a different color from the options listed. Then click OK Notice how every cell containing "yes" is now highlighted! 9) Center the 0/F and Yes/No in the middle of the columns for easier readability 10) Now check to see it 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 521,287, 9.8% variance. F. No 3 3 2 3 4 5 6 7 8 19 50 51 52 53 54 56 57 Direction Dorformanco Donert Analysis nage 1 Analysis nane 11 Wome 30,000 50.00 Kalsel Fron Confere Maite Buget Partner Farshe menthede For ACTUAL MASTER BUDGET VERANCE VAR 21. wand des w 5 SC Shop 1131020 200 gr LON Vale CatSale Com 62.89 ng 5 5 $ that le CM Sales 16,90 5 5 3.00 5 12,000 110.000 5 11.000 al Combo Mh Ted State Dict Done Adre Oro Othe 5 $ 5 5 $ 15.500 12.000 2.750 12.00 15 INTEL