The Munchkin Theater is a nonprofit organization devoted to staging plays for children. The theater has a very small fulltime professional administrative staff. Through a special arrangement with the actors' union, actors and directors rehearse without pay and are paid only for actual performances. The Munchkin Theater has asked for your help in preparing a Planning budget at the beginning of the year and evaluating actual expenses at the end of the year. The theater expects to put on five different productions with a total of 60 performances. For example, one of the productions is Peter Rabbit, which had been budgeted for five performances. After interviewing various people affiliated with the theater you have developed the following estimated cost formus of the eight expenses that will be included in your Planning budget: By the end of the year, The Munchkin Theater actually put on four productions and a total of 64 performances. The actual expenses incurred during the year were as follows: 4. Insert a favorable (F) or unfavorable (U) label in column G for each static budget variance shown in column F using the following two. step process: a. Create an IF-THEN statement in cell G10 that properly labels the actors' and directors' wages static budget variance as favorable on unfavorable. (Hint: Your If-Then statement should be focused on the amounts in cells H10 and E10.) What label appears for this variance, F or U ? b. Copy your IF-THEN statement from cell G10 into cells G11 through G18. What label appears for the administrative expense static budget variance, F or U ? 5. Calculate the amount of the sales volume variances in column I using the following five-step process (Do not worry about labeling the variances as U or F at this point): a. Create a formula for the actors' and directors' wages sales volume variance in cell N10. What is the amount of the sales volume variance for actors' and directors' wages? b. Copy your formula from cell N10 into cells N11 through N17. What is the amount of the sales volume variance for administrative expenses (cell N17)? c. Use the AutoSum feature to calculate the total sales volume variance in cell N18. What is the total sales volume variance? d. Using the Absolute Value function, input the absolute values of the amounts in cells N10 through N18 into cells I10 through I18. e. Hide column N. 6. Insert a favorable (F) or unfavorable (U) label in column J for each sales volume variance shown in column I using the following twostep process: a. Create an IF-THEN statement in cell J10 that properly labels the actors' and directors' wages sales volume variance as favorable or unfavorable. (Hint: Your If-Then statement should be focused on the amounts in cells K10 and H10. ) What label appears for this variance, F or U ? b. Copy your IF-THEN statement from cell J10 into cells J11 through J18. What label appears for the administrative expense sales volume variance. F or U ? The Munchkin Theater is a nonprofit organization devoted to staging plays for children. The theater has a very small fulltime professional administrative staff. Through a special arrangement with the actors' union, actors and directors rehearse without pay and are paid only for actual performances. The Munchkin Theater has asked for your help in preparing a Planning budget at the beginning of the year and evaluating actual expenses at the end of the year. The theater expects to put on five different productions with a total of 60 performances. For example, one of the productions is Peter Rabbit, which had been budgeted for five performances. After interviewing various people affiliated with the theater you have developed the following estimated cost formus of the eight expenses that will be included in your Planning budget: By the end of the year, The Munchkin Theater actually put on four productions and a total of 64 performances. The actual expenses incurred during the year were as follows: 4. Insert a favorable (F) or unfavorable (U) label in column G for each static budget variance shown in column F using the following two. step process: a. Create an IF-THEN statement in cell G10 that properly labels the actors' and directors' wages static budget variance as favorable on unfavorable. (Hint: Your If-Then statement should be focused on the amounts in cells H10 and E10.) What label appears for this variance, F or U ? b. Copy your IF-THEN statement from cell G10 into cells G11 through G18. What label appears for the administrative expense static budget variance, F or U ? 5. Calculate the amount of the sales volume variances in column I using the following five-step process (Do not worry about labeling the variances as U or F at this point): a. Create a formula for the actors' and directors' wages sales volume variance in cell N10. What is the amount of the sales volume variance for actors' and directors' wages? b. Copy your formula from cell N10 into cells N11 through N17. What is the amount of the sales volume variance for administrative expenses (cell N17)? c. Use the AutoSum feature to calculate the total sales volume variance in cell N18. What is the total sales volume variance? d. Using the Absolute Value function, input the absolute values of the amounts in cells N10 through N18 into cells I10 through I18. e. Hide column N. 6. Insert a favorable (F) or unfavorable (U) label in column J for each sales volume variance shown in column I using the following twostep process: a. Create an IF-THEN statement in cell J10 that properly labels the actors' and directors' wages sales volume variance as favorable or unfavorable. (Hint: Your If-Then statement should be focused on the amounts in cells K10 and H10. ) What label appears for this variance, F or U ? b. Copy your IF-THEN statement from cell J10 into cells J11 through J18. What label appears for the administrative expense sales volume variance. F or U
