Name

Student number
Submission date:
 Instructions for students

1. Your input is required for the following spreadsheets whose tabs are highlighted in yellow:
> Static Budget
> Actual Budget
> Flexible Budget
> Var Analysis - Static and Flex
> Material variances
> Labour variances
> Assumptions

2. Within each of the above spreadsheets, your input is required for cells highlighted in grey:

3. The input data is availalble in the spreadsheet, ' Input Database'. This spreadsheet is locked and you will
not be able to make any changes to its values. You are required to link data from this spreadsheet and
complete the inputs in the spreadsheets above ( whose tabs are highlighted in yellow).

4.On the Input data spreadsheet, cells K33:O33 represents unproductive / unbilled factor. The percentage reflects hours over
revenue generating hours. These are hours where re-work had to be done, but clients would not be billed for. This factor is to
the direct labour budget, but not in the revenue budget.

5. Ensure that there are no plugged values in cells, IF statements are used where appropriate.

6. Upload your completed spreadsheet to eConestoga

n yellow:

in grey:

is locked and you will

his spreadsheet and
ow).

ctor. The percentage reflects hours over and above

s would not be billed for. This factor is to be included in

ropriate.
 SUPER CLEAN
Operating Budget for the period Jan - Dec '18

Quarters
1 2 3 4 Year

Sales budget
Sales Commercial $112,000 $137,200 $120,400 $145,600 $515,200
Sales residential $60,000 $73,500 $64,500 $78,000 $276,000
Total sales $172,000 $210,700 $184,900 $223,600 $791,200

Direct material budget

Variable costs commercial $3,080 $3,773 $3,311 $4,004 $14,168
Variable costs residential $660 $809 $710 $858 $3,036
Total variable costs $3,740 $4,582 $4,021 $4,862 $17,204

Labour budget
Commercial $56,000 $68,600 $60,200 $72,800 $257,600
Residential $24,000 $29,400 $25,800 $31,200 $110,400
Total labour $80,000 $98,000 $86,000 $104,000 $368,000

Fixed Overhead:
Receptionist $6,250 $6,250 $6,250 $6,250 $25,000
Depreciation $9,375 $9,375 $9,375 $9,375 $37,500
Gas $7,500 $7,500 $7,500 $7,500 $30,000
Office Supplies $1,000 $1,000 $1,000 $1,000 $4,000
Total $24,125 $24,125 $24,125 $24,125 $96,500
 Marks

Total 8
 SUPER CLEAN
Operating results for the period Jan - Dec '18

Quarters
1 2 3 4 Year

Sales budget
Sales Commercial $106,400 $140,000 $109,200 $142,800 $498,400
Sales residential $57,000 $75,000 $58,500 $76,500 $267,000
Total sales $163,400 $215,000 $167,700 $219,300 $765,400

Direct material budget

Variable costs commercial $2,830 $3,724 $2,905 $3,798 $13,257
Variable costs residential $575 $756 $590 $771 $2,691
Total variable costs $3,405 $4,480 $3,494 $4,570 $15,949

Labour budget
Commercial $55,062 $72,450 $56,511 $73,899 $257,922
Residential $23,598 $31,050 $24,219 $31,671 $110,538
Total labour $78,660 $103,500 $80,730 $105,570 $368,460

Fixed Overhead:
Receptionist $6,000 $5,750 $5,900 $6,300 $23,950
Depreciation $9,375 $9,375 $9,375 $9,375 $37,500
Gas $7,200 $7,800 $7,100 $7,000 $29,100
Office Supplies $950 $1,100 $1,050 $1,000 $4,100
Total $23,525 $24,025 $23,425 $23,675 $94,650
 Marks

Total 8
 SUPER CLEAN
Flexible budget for the period Jan - Dec '18

Quarters
1 2 3 4 Year

Sales budget
Sales Commercial $106,400 $140,000 $109,200 $142,800 $498,400
Sales residential $57,000 $75,000 $58,500 $76,500 $267,000
Total sales $163,400 $215,000 $167,700 $219,300 $765,400

Direct material budget

Variable costs commercial $2,780 $3,658 $2,853 $3,731 $13,021
Variable costs residential $564 $743 $579 $757 $2,643
Total variable costs $3,344 $4,400 $3,432 $4,488 $15,664

Labour budget
Commercial $61,180 $80,500 $62,790 $82,110 $286,580
Residential $26,220 $34,500 $26,910 $35,190 $122,820
Total labour $87,400 $115,000 $89,700 $117,300 $409,400

Fixed Overhead:
Receptionist $6,250 $6,250 $6,250 $6,250 $25,000
Depreciation $9,375 $9,375 $9,375 $9,375 $37,500
Gas $7,500 $7,500 $7,500 $7,500 $30,000
Office Supplies $1,000 $1,000 $1,000 $1,000 $4,000
Total $24,125 $24,125 $24,125 $24,125 $96,500
 Marks

Total 8
 Super Clean Inc
Static Budget Variance
Actual for the year Static for the year Variance U/F
Sales budget
Sales Commercial 498,400 515,200 $16,800 U
Sales residential 267,000 276,000 $9,000 U
Total sales 765,400 791,200 $25,800 U

Direct material budget

Variable costs commercial 13,257 14,168 $911 F
Variable costs residential 2,691 3,036 $345 F
Total variable costs 15,949 17,204 $1,256 F

Labour budget
Commercial 257,922 257,600 $322 U
Residential 110,538 110,400 $138 U
Total labour 368,460 368,000 $460 U

Fixed Overhead:
Receptionist 23,950 25,000 $1,050 F
Depreciation 37,500 37,500 $0 F
Gas 29,100 30,000 $900 F
Office Supplies 4,100 4,000 $100 U
Total 94,650 96,500 $1,850 F
n Inc
Flexible Budget Variance Marks
Actual for the year Flexible for the year Variance U/F

498,400 498,400 - F 1
267,000 267,000 - F 1
765,400 765,400 - F 1

13,257 13,021 236 U 1

2,691 2,643 48 U 1
15,949 15,664 284 U 1

257,922 286,580 28,658 F 1

110,538 122,820 12,282 F 1
368,460 409,400 40,940 F 1

23,950 25,000 1,050 F 1

37,500 37,500 - F 1
29,100 30,000 900 F 1
4,100 4,000 100 U 1
94,650 96,500 1,850 F 1

Total 14
 Direct Materials - Commercial

Actual Quantity -AQ $ 2,367 Actual Quantity -AQ $ 2,367

Actual Rate -AR $ 6 Standard Rate -SR $ 6
Total $ 13,257 Total $ 13,019

Price Variance $ 238 U Quantity Variance

Total Variance

Explanation for Quantity variance:

The quantity variance is favourable as the total static cost is more than total flexible cost.

Explanation for price variance:

The price variance is unfavourable as the total actual cost is more than total flexible cost.

Direct Materials - Residential

Actual Quantity -AQ $ 481 Actual Quantity -AQ $ 481

Actual Rate -AR $ 6 Standard Rate -SR $ 6
Total $ 2,691 Total $ 2,646

Price Variance $ 45 U Quantity Variance

Total Variance

Explanation for Quantity variance:

The quantity variance is favourable as the total static cost is more than total flexible cost.

Explanation for price variance:

The price variance is unfavourable as the total actual cost is more than total flexible cost.
als - Commercial Marks

Standard Quantity - SQ $ 2,576

Standard Rate - SR $ 6
Total $ 14,168 3

Quantity Variance $ 1,149 U 2

$ 911 F 1

ials - Residential

Standard Quantity - SQ $ 552

Standard Rate - SR $ 6
Total $ 3,036 3

Quantity Variance $ 390 F 2

$ 345 F 1

Total 16
 Labour - Commercial

Actual Hours - AH 14,329.00 Actual Hours - AH 14,329.00

Actual Rate -AR 18 Standard Rate -SR $ 20.00
Total 257,922 Total 286,580

Rate Variance 28,658 F Efficiency Variance

Total Variance 322

Explanation for Efficiency variance:

The efficiency variance is unfavourable as the total static hours are less than total flexible hours.

Explanation for rate variance:

The rate variance is favourable as the total actual hours are less than total flexible hours.

Labour - Residential

Actual Hours - AH 6,141.00 Actual Hours - AH 6,141.00

Actual Rate -AR 18 Standard Rate -SR $ 20.00
Total 110,538 Total 122,820

Rate Variance 12,282 F Efficiency Variance

Total Variance 138

Explanation for Efficiency variance:

The efficiency variance is unfavourable as the total static labour hours are less than total flexible hours.

Explanation for rate variance:

The rate variance is favourable as the total actual hours are less than total flexible hours.
mercial Marks

Standard Hours - SH 12,880.00

Standard Rate - SR $ 20.00
Total 257,600 3

28,980 U 2
U 1

. 1

ential

Standard Hours - SH 5,520.00

Standard Rate - SR $ 20.00
Total 110,400 3

12,420 U 2
U
1

e hours. 1

Total 16
List three assumptions beyond numbers:
Assumption 1:
While taking total sales into the consideration, it was assumed that there was no opening and closing inventory.

Assumption 2:
When we calculate fixed overhead in flexible budget, the values of static budget are considered.

Assumption 3:
Total number of breakdown is taken as a value while we consider actual hours as unproductive.
d closing inventory.

ed.

ve.
 Parameters - budget
Quarters
1 2 3 4 Year
Sales ( hours):
Budgeted total sales in hours 4,000 4,900 4,300 5,200 18,400
Budgeted commercial sales in hours 2,800 3,430 3,010 3,640 12,880
Budgeted residential sales in hours 1,200 1,470 1,290 1,560 5,520
Selling price ( $/hr):
Selling price per hour (commercial) $40 $40 $40 $40 $40
Selling price per hour (residential) $50 $50 $50 $50 $50

Direct labour expense ( $/hr): $ 20 $ 20 $ 20 $ 20

Cleaning Supply usage ( litre / labour hour):

Commercial 0.2 0.2 0.2 0.2
Residential 0.1 0.1 0.1 0.1

Cleaning Supply expense ( $/litre)): $ 5.50 $ 5.50 $ 5.50 $ 5.50

Fixed overhead:
Receptionist 6,250 6,250 6,250 6,250 25,000
Depreciation 9,375 9,375 9,375 9,375 37,500
Gas 7,500 7,500 7,500 7,500 30,000
Office Supplies 1,000 1,000 1,000 1,000 4,000
 Parameters - actual
Quarters
1 2
Sales ( hours):
Actual total sales 3,800 5,000
Actual sales - commercial 2,660 3,500
Actual sales - residential 1,140 1,500
Selling price ( $/hr):
Actual selling price - commercial $40 $40
Actual sellling price - residential $50 $50

Direct labour expense ( $/hr): $ 18 $ 18

Actual Cleaning Supply usage ( litre / labour hour):

Commercial 0.19 0.19
Residential 0.09 0.09

Actual Cleaning Supply expense ( $/litre)): $ 5.6 $ 5.6

Actual Fixed overhead:

Receptionist 6,000 5,750
Depreciation 9,375 9,375
Gas 7,200 7,800
Office Supplies 950 1,100

Total no. of hours actually paid to employees 20,470

Breakdown:
Commercial 3,059 4,025
Residential 1,311 1,725
Actual hours worked 4,370 5,750
Direct labour cost 78,660 103,500

Unproductive ( unbilled ) factor 15% 15%

Quarters
3 4 Year

3,900 5,100 17,800

2,730 3,570 12,460
1,170 1,530 5,340

$40 $40 $40

$50 $50 $50

$ 18 $ 18

0.19 0.19
0.09 0.09

$ 5.6 $ 5.6

5,900 6,300 23,950

9,375 9,375 37,500
7,100 7,000 29,100
1,050 1,000 4,100

3,140 4,106 14,329

1,346 1,760 6,141
4,485 5,865 20,470
80,730 105,570 368,460

15% 15% 15%

 Marks
Tab title Student marks
allocated

Static Budget 8
Actual Budget 8
Flexible budget 8
Variance Analysis - Static and Flex 14
Material variances 16
Labour variances 16

List three the assumptions beyond the numbers. 6

Subtotal 76 0
Worksheet data quality: no plugged values, use of IF
statements and cell references 9

Total 85 0