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please show me your work as excel for only part 2,3,4,5 Problems 7-28 Variance analysis, non-manufacturing setting. Stevie McQueen has run Lightning Car Detailing for
please show me your work as excel for only part 2,3,4,5
Problems 7-28 Variance analysis, non-manufacturing setting. Stevie McQueen has run Lightning Car Detailing for the past 10 years. His static-budget and actual results for June are provided below. Stevie has one employee who has been with him for all 10 years that he has been in business. He has not been as lucky with month. It usually takes 2 hours to detail a vehicle. It takes as long for the seasoned employee as for the new ones, as the former tends to put more into the job. Stevie pays his long-term employee $20 per hour and the other two employees $10 per hour. Stevie pays all employees for 2 hours of work on each car, regardless of how long the work actually takes them. There were no wage increases in June. Lightning Car Detailing Actual and Budgeted Statement of Comprehensive Income For the Month Ending June 30 Budget Actual Cars detailed 200 225 Revenue $30,000 $39,375 Variable costs: Costs of supplies 2,250 Labour 5,600 6,000 Total variable costs 7,100 Contribution margin 22,900 31,125 Fixed costs 9,500 9,500 Operating income $13,400 $21,625 1,500 8,250 Required 1. Prepare a statement of the static-budget variances that Stevie would be interested in. 2. Compute any flexible-budget variances that you believe would be appropriate. 3. What information, in addition to that provided in the statements of comprehensive income, would you want Stevie to gather if you wanted to improve operational efficiency? 4. How many cars, on average, did Stevie budget for each employee? How many cars did they actually detail? 5. What advice would you give Stevie about motivating his employees? 29 M Step by Step Solution
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