Please help me with the excel calculations too what to link where:)
Overview: In this assignment, you are provided with a case which includes data relating to static budget, flexible budget, and variance analysis. You will transcribe the data from the case and create a: Static budget Actual budget Flexible budget Static budget variant Go to page 5 Flexible budget variance Variance analysis You will also write a memo regarding possible unethical practices during budget preparation. Budget for the year 2020: CASE The budget for the year 2020 was prepared in December 2019 and had the following components: Background: Sparkling Clean Services (SCS) is a local business in the Tri-cities area. It provides cleaning services to residential households and commercial establishments. Both households and businesses sign contracts with SCS. As the contractor, SCS dispatches its crew to the locations. The crew performs the cleaning as per the contracts and reports back to the company main desk. The main desk then prepares the invoice and sends them to the clients. Clients have one day to pay the invoice. Sales volume can vary from one . quarter to the next. 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: Quarter 1 2 3 4 In terms of expenses, the main expense for SCS relates to labour. They pay crew members competitive wages and benefits. The wage rate is calculated on an hourly basis and is fixed for the entire year. 2,500 2,700 3,000 2,800 Budgeted commercial sales in hours Budgeted residential sales in hours 1,000 1,200 900 1,300 The next expense item is cleaning supplies. SCS accounts for cleaning supplies relative to the hours worked. For example, they estimate that cleaning supplies are consumed at a rate of 0.2 litres per labour hour. This is a good measure because the longer it takes for a site to be cleaned, the more the . consumption of cleaning supplies. Cleaning supplies are procured from a prominent vendor and the cost is fixed for the entire year. For 2020, the budgeted selling price per hours were: Quarter 1 1 2 3 4 $40 $40 $40 Selling price per hour (commercial) Selling price per hour (residential) $40 $51 $51 $51 $51 Sometimes clients are not happy about the cleaning services and register a complaint. In that case, the crew is dispatched again for a second cleaning. The hours accruing from such scenarios are not billed to the clean as this constitutes a 'service recovery. However, the crew is paid for such hours. SCS maintains a . , . a record of these hours and classifies them as 'unproductive hours', or 'unbilled hours. This is calculated as a percentage of revenue earning hours (e-g., 10% of revenue generating hours). For the purpose of this assignment, assume that there is no consumption of cleaning materials when this second cleaning is being done. . 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. 3 Page 4 Page 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: Direct Labour expense: SCS paid its employees an hourly rate of $21 for the entire year. Receptionist: Budgeted expense is $5,000 per quarter and is the same for all four quarters. 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. 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. Cleaning supply expense: Actual expense was $5.50 per liter for the entire year. Gas: Budgeted expenditure on gas is $7,000 and is 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: Maintenance: Budgeted expenditure on Maintenance is $1,000 per quarter and is the same for all four quarters. Receptionist: Actual expense was $6,200 per quarter and is the same for all four quarters. . Actual results for the year 2020. Depreciation: It is now January 7, 2021 and Sparkling Clean Services (SCS) is comparing the actual expenses against their budget. Here is what they found. 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: Revenue: Actual expenditure on gas was $7,100 and was the same for all four quarters. For 2020, the actual sales hours were: : Quarter 1 2 3 4 Maintenance: Actual expenditure on Maintenance was $1,100 per quarter and was the same for all four quarters. . 2,400 2,700 2,800 3,000 Actual sales - commercial Actual sales - residential 1,150 1,250 1,000 1,200 For 2020, the actual hourly revenue was: 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. Quarter 1 2 3 4 Actual selling price-commercial $45 $45 $45 $45 Actual selling price - residential $50 $50 $50 $50 5 Page 6 Page Required: Part A: For this part you will use the template provided in Excel Workbook format. Complete the following steps in sequence: Step # Spreadsheet title Input Database One Two Input Database Three Static Budget Four Actual Budget Five Flexible Budget Activity Populate the section A4:G24 with data from the above case and develop the budget parameters. Populate the section 14:035 with data from the above case and develop the actual parameters. Populate the section A7:F29 with data from the spreadsheet 'Input Database and develop the static budget. Populate the section A7:F29 with data from the spreadsheet 'Input Database' and develop the actual budget. Populate the section A7:F29 with data from the spreadsheet 'Input Database' and develop the flexible budget. Populate the section AS:E26 with data from the spreadsheets 'Static Budget' and 'Actual Budget' and develop the static budget variance. Populate the section G5J26 with data from the spreadsheet 'Actual Budget' and 'Flexible Budget' and develop the flexible budget variance. Using applicable data complete the analysis of Material variances for both the commercial and residential segments. Using applicable data complete the analysis of Material variances for both the commercial and residential segments. Six Var Analysis - Static and Flex Seven Var Analysis - Static and Flex Eight Material variances Nine Labour variances 7 Page Other guidelines: Data should be entered in the 'Input Database' spreadsheet only. For all other spreadsheets, you must use cell references, linking data from 'Input Database' or other spreadsheets. Do not enter data or calculations without cell references. To calculate variances, you need to use 'It' formula. SCS Operating Budget for the period Jan-Dec 20 Quarters 3 1 2 4 Year Marks 2 Sales budget Sales Commercial Sales residential Total sales 2 Direct material budget Variable costs commercial Variable costs residential Total variable costs 2 Labour budget Commercial Residential Total labour 2 Fixed Overhead: Receptionist Depreciation Gas Maintenance Total Total 8 SCS Operating results for the period Jan-Dec 20 Quarters 3 1 2 4 Year Marks Sales budget Sales Commercial Sales residential Total sales 2 2 Direct material budget Variable costs commercial Variable costs residential Total variable costs 2 Labour budget Commercial Residential Total labour 2 Fixed Overhead: Receptionist Depreciation Gas Maintenance Total Total 8 SCS Flexible budget for the period Jan-Dec 20 Quarters 3 1 2 4 Year Marks Sales budget Sales Commercial Sales residential Total sales 2 2 Direct material budget Variable costs commercial Variable costs residential Total variable costs 2 Labour budget Commercial Residential Total labour 2 Fixed Overhead: Receptionist Depreciation Gas Maintenance Total Total 8 SCS Marks Static Budget Variance Static for the vear Variance Flexible Budget Variance Flexible for the year Variance Actual for the year U/F Actual for the year U/E Sales budget Sales Commercial Sales residential Total sales 1 1 1 Direct material budget Variable costs commercial Variable costs residential Total variable costs 1 1 1 Labour budget Commercial Residential Total labour 1 1 1 1 Fixed Overhead: Receptionist Depreciation Gas Maintenance Total 1 1 Total 14 Direct Materials - Commercial Marks Actual Quantity-AQ Actual Rate -AR Total Actual Quantity -AQ Standard Rate -SR Total Standard Quantity - SQ Standard Rate - SR Total 3 Price Variance Quantity Variance 2 1 Total Variance Explanation for Quantity variance: 1 Explanation for price variance: 1 Direct Materials - Residential Actual Quantity -AQ Actual Rate -AR Total Actual Quantity -AQ Standard Rate-SR Total Standard Quantity - SQ Standard Rate - SR Total Price Variance Quantity Variance 2 Total Variance 1 Explanation for Quantity variance: 1 Explanation for price variance: 1 Total 16 Labour - Commercial Marks Actual Hours -AH Actual Rate -AR Actual Hours - AH Standard Rate -SR Total Standard Hours - SH Standard Rate - SR Total Total 3 Rate Variance Efficiency Variance 2 Total Variance 1 Explanation for Efficiency variance: 1 Explanation for rate variance: 1 Labour - Residential Actual Hours -AH Actual Rate -AR Total Actual Hours -AH Standard Rate-SR Total Standard Hours - SH Standard Rate - SR Total 3 Rate Variance Efficiency Variance 2 Total Variance 1 Explanation for Efficiency variance: 1 Explanation for rate variance: 1 Total 16 Parameters - budget Parameters - actual Quarters Quarters 2 1 3 4 Year Growth % Quarter over quarter change Sales (hours): Budgeted total sales in hours Budgeted commercial sales in hours Budgeted residential sales in hours Selling rate $/hr): Selling price per hour commercial Selling price per hour (residential) Sales (hours): Actual total sales Actual sales - commercial Actual sales - residential Selling rate ($/hr): Actual selling price-commercial Actual selling price-residential Direct labour expense ($/hr): Direct labour expense ($/hr): : Cleaning Supply usage ( litre / labour hour): Commercial Residential Actual Cleaning Supply usage ( litre / labour hour): Commercial Residential Cleaning Supply expense (S/litre)); Actual Cleaning Supply expense ($/litre)); Fixed overhead: Receptionist Depreciation Gas Maintenance 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 Overview: In this assignment, you are provided with a case which includes data relating to static budget, flexible budget, and variance analysis. You will transcribe the data from the case and create a: Static budget Actual budget Flexible budget Static budget variant Go to page 5 Flexible budget variance Variance analysis You will also write a memo regarding possible unethical practices during budget preparation. Budget for the year 2020: CASE The budget for the year 2020 was prepared in December 2019 and had the following components: Background: Sparkling Clean Services (SCS) is a local business in the Tri-cities area. It provides cleaning services to residential households and commercial establishments. Both households and businesses sign contracts with SCS. As the contractor, SCS dispatches its crew to the locations. The crew performs the cleaning as per the contracts and reports back to the company main desk. The main desk then prepares the invoice and sends them to the clients. Clients have one day to pay the invoice. Sales volume can vary from one . quarter to the next. 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: Quarter 1 2 3 4 In terms of expenses, the main expense for SCS relates to labour. They pay crew members competitive wages and benefits. The wage rate is calculated on an hourly basis and is fixed for the entire year. 2,500 2,700 3,000 2,800 Budgeted commercial sales in hours Budgeted residential sales in hours 1,000 1,200 900 1,300 The next expense item is cleaning supplies. SCS accounts for cleaning supplies relative to the hours worked. For example, they estimate that cleaning supplies are consumed at a rate of 0.2 litres per labour hour. This is a good measure because the longer it takes for a site to be cleaned, the more the . consumption of cleaning supplies. Cleaning supplies are procured from a prominent vendor and the cost is fixed for the entire year. For 2020, the budgeted selling price per hours were: Quarter 1 1 2 3 4 $40 $40 $40 Selling price per hour (commercial) Selling price per hour (residential) $40 $51 $51 $51 $51 Sometimes clients are not happy about the cleaning services and register a complaint. In that case, the crew is dispatched again for a second cleaning. The hours accruing from such scenarios are not billed to the clean as this constitutes a 'service recovery. However, the crew is paid for such hours. SCS maintains a . , . a record of these hours and classifies them as 'unproductive hours', or 'unbilled hours. This is calculated as a percentage of revenue earning hours (e-g., 10% of revenue generating hours). For the purpose of this assignment, assume that there is no consumption of cleaning materials when this second cleaning is being done. . 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. 3 Page 4 Page 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: Direct Labour expense: SCS paid its employees an hourly rate of $21 for the entire year. Receptionist: Budgeted expense is $5,000 per quarter and is the same for all four quarters. 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. 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. Cleaning supply expense: Actual expense was $5.50 per liter for the entire year. Gas: Budgeted expenditure on gas is $7,000 and is 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: Maintenance: Budgeted expenditure on Maintenance is $1,000 per quarter and is the same for all four quarters. Receptionist: Actual expense was $6,200 per quarter and is the same for all four quarters. . Actual results for the year 2020. Depreciation: It is now January 7, 2021 and Sparkling Clean Services (SCS) is comparing the actual expenses against their budget. Here is what they found. 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: Revenue: Actual expenditure on gas was $7,100 and was the same for all four quarters. For 2020, the actual sales hours were: : Quarter 1 2 3 4 Maintenance: Actual expenditure on Maintenance was $1,100 per quarter and was the same for all four quarters. . 2,400 2,700 2,800 3,000 Actual sales - commercial Actual sales - residential 1,150 1,250 1,000 1,200 For 2020, the actual hourly revenue was: 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. Quarter 1 2 3 4 Actual selling price-commercial $45 $45 $45 $45 Actual selling price - residential $50 $50 $50 $50 5 Page 6 Page Required: Part A: For this part you will use the template provided in Excel Workbook format. Complete the following steps in sequence: Step # Spreadsheet title Input Database One Two Input Database Three Static Budget Four Actual Budget Five Flexible Budget Activity Populate the section A4:G24 with data from the above case and develop the budget parameters. Populate the section 14:035 with data from the above case and develop the actual parameters. Populate the section A7:F29 with data from the spreadsheet 'Input Database and develop the static budget. Populate the section A7:F29 with data from the spreadsheet 'Input Database' and develop the actual budget. Populate the section A7:F29 with data from the spreadsheet 'Input Database' and develop the flexible budget. Populate the section AS:E26 with data from the spreadsheets 'Static Budget' and 'Actual Budget' and develop the static budget variance. Populate the section G5J26 with data from the spreadsheet 'Actual Budget' and 'Flexible Budget' and develop the flexible budget variance. Using applicable data complete the analysis of Material variances for both the commercial and residential segments. Using applicable data complete the analysis of Material variances for both the commercial and residential segments. Six Var Analysis - Static and Flex Seven Var Analysis - Static and Flex Eight Material variances Nine Labour variances 7 Page Other guidelines: Data should be entered in the 'Input Database' spreadsheet only. For all other spreadsheets, you must use cell references, linking data from 'Input Database' or other spreadsheets. Do not enter data or calculations without cell references. To calculate variances, you need to use 'It' formula. SCS Operating Budget for the period Jan-Dec 20 Quarters 3 1 2 4 Year Marks 2 Sales budget Sales Commercial Sales residential Total sales 2 Direct material budget Variable costs commercial Variable costs residential Total variable costs 2 Labour budget Commercial Residential Total labour 2 Fixed Overhead: Receptionist Depreciation Gas Maintenance Total Total 8 SCS Operating results for the period Jan-Dec 20 Quarters 3 1 2 4 Year Marks Sales budget Sales Commercial Sales residential Total sales 2 2 Direct material budget Variable costs commercial Variable costs residential Total variable costs 2 Labour budget Commercial Residential Total labour 2 Fixed Overhead: Receptionist Depreciation Gas Maintenance Total Total 8 SCS Flexible budget for the period Jan-Dec 20 Quarters 3 1 2 4 Year Marks Sales budget Sales Commercial Sales residential Total sales 2 2 Direct material budget Variable costs commercial Variable costs residential Total variable costs 2 Labour budget Commercial Residential Total labour 2 Fixed Overhead: Receptionist Depreciation Gas Maintenance Total Total 8 SCS Marks Static Budget Variance Static for the vear Variance Flexible Budget Variance Flexible for the year Variance Actual for the year U/F Actual for the year U/E Sales budget Sales Commercial Sales residential Total sales 1 1 1 Direct material budget Variable costs commercial Variable costs residential Total variable costs 1 1 1 Labour budget Commercial Residential Total labour 1 1 1 1 Fixed Overhead: Receptionist Depreciation Gas Maintenance Total 1 1 Total 14 Direct Materials - Commercial Marks Actual Quantity-AQ Actual Rate -AR Total Actual Quantity -AQ Standard Rate -SR Total Standard Quantity - SQ Standard Rate - SR Total 3 Price Variance Quantity Variance 2 1 Total Variance Explanation for Quantity variance: 1 Explanation for price variance: 1 Direct Materials - Residential Actual Quantity -AQ Actual Rate -AR Total Actual Quantity -AQ Standard Rate-SR Total Standard Quantity - SQ Standard Rate - SR Total Price Variance Quantity Variance 2 Total Variance 1 Explanation for Quantity variance: 1 Explanation for price variance: 1 Total 16 Labour - Commercial Marks Actual Hours -AH Actual Rate -AR Actual Hours - AH Standard Rate -SR Total Standard Hours - SH Standard Rate - SR Total Total 3 Rate Variance Efficiency Variance 2 Total Variance 1 Explanation for Efficiency variance: 1 Explanation for rate variance: 1 Labour - Residential Actual Hours -AH Actual Rate -AR Total Actual Hours -AH Standard Rate-SR Total Standard Hours - SH Standard Rate - SR Total 3 Rate Variance Efficiency Variance 2 Total Variance 1 Explanation for Efficiency variance: 1 Explanation for rate variance: 1 Total 16 Parameters - budget Parameters - actual Quarters Quarters 2 1 3 4 Year Growth % Quarter over quarter change Sales (hours): Budgeted total sales in hours Budgeted commercial sales in hours Budgeted residential sales in hours Selling rate $/hr): Selling price per hour commercial Selling price per hour (residential) Sales (hours): Actual total sales Actual sales - commercial Actual sales - residential Selling rate ($/hr): Actual selling price-commercial Actual selling price-residential Direct labour expense ($/hr): Direct labour expense ($/hr): : Cleaning Supply usage ( litre / labour hour): Commercial Residential Actual Cleaning Supply usage ( litre / labour hour): Commercial Residential Cleaning Supply expense (S/litre)); Actual Cleaning Supply expense ($/litre)); Fixed overhead: Receptionist Depreciation Gas Maintenance 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
