Question:

Determine the formula to show how many offices, on average, the employees cleaned. (X = number of offices cleaned by experience mployee. cleaned by both less experienced employees) (Click the icon for information regarding the formula selections.) E X Y ) = B Next, calculate the budgeted and actual number of offices for each employee type Budgeted Actual number of offices number of offices Experienced employee Less experienced employees Requirement 2. Prepare a flexible budget for June 2020. (Round your answers to the nearest whole dollar.) Helping Maids Income Statement Variances For the month ended April 30, 2020 Flexible Budget Actual budget Offices cleaned 250 280 Revenue 32.500 S 47.600 Variable costs Costs of supplies 1,750 2,500 Labor 3,500 7,200 Total variable costs B.250 9,70 Contribution margin 24.250 37,90 Fixed costs 9.700 9,70 Operating income 14.550 S 28,20 Requirement 3. Compute the sales price variance and the labor efficiency variance for each labor type. Begin with the sales price variance. Determine the formula then compute the sales price variance. Label the variance as favorable (F) or unfavorable (U). Sales price ( Actual sales price - Budgeted sales price ) x Actual# of offices = variance S S F Next, determine the formula you will use to compute the labor efficiency variances. (Actual # of offices cleaned - Budgeted quantity of input allowed for actual output) x Budgeted wage rate per office Now compute the labor efficiency variance for each type of labor. Label the variance as favorable (F) or unfavorable (U). Labor efficiency variance Experienced worker Less experienced workers Requirement 4. What information, in addition to that provided in the income statements, would you want Black to gather, if you wanted to improve operational efficiency? In addition to understanding the variances computed above, Black should attempt to keep track of the number of offices cleaned by each employee , as well as the number of hours actually spent on each office- X - X Data table More info Comfort Maids Actual and Budgeted Income Jackie has one employee who has been with her for all 10 years that she has been in business. In addition, at any given time she also employs two Statements For the Month Ended April 30, 2020 other less-experienced workers. It usually takes each employee 2 hours to clean an office, regardless of his or her experience. Barnsworth pays her experienced Budget Actual employee $40 per office and the other two employees $20 per office. There were 250 280 no wage increases in April. Offices cleaned Revenue 45,000 $ 57,400 Variable costs: - X Costs of supplies 1,750 2,525 Requirements 6,500 Labor 7,200 Total variable costs 8.250 9,725 1. How many offices, on average, did Barnsworth budget for each employee? How many offices did each employee actually clean? Contribution margin 36.750 47.675 2. Prepare a flexible budget for April 2020. 9,300 9,300 Fixed costs Compute the sales price variance and the labor efficiency variance for each 27,450 $ 38,375 labor type. Operating income 4. What information, in addition to that provided in the income statements, would you want Barnsworth to gather, if you wanted to improve operational efficiency? Print Done Print Done