Chapter 9: Applying Excel: Excel Worksheet (Part 1 of 2) Download the Applying E

Question

Chapter 9: Applying Excel: Excel Worksheet (Part 1 of 2)

Download the Applying Excel form and enter formulas in all cells that contain question marks.

For example, in cell B30 enter the formula "= B20".

Notes:

In the text, variances are always displayed as positive numbers. To accomplish this, you can use the ABS() function in Excel. For example, the formula in cell C31 would be "=ABS(E31?B31)".

Cells D31 through D39 and G31 through G39 already contain formulas to compute and display whether variances are Favorable or Unfavorable. Do not enter data or formulas into those cells—if you do, you will overwrite these formulas.

After entering formulas in all of the cells that contained question marks, verify that the amounts match the numbers in the example in the text.

Check your worksheet by changing the revenue in cell D4 to $16.00; the cost of ingredients in cell D5 to $6.50; and the wages and salaries in cell B6 to $10,000. The activity variance for net operating income should now be $850 U and the spending variance for total expenses should be $410 U. If you do not get these answers, find the errors in your worksheet and correct them.

Save your completed Applying Excel form to your computer and then upload it here by clicking “Browse.” Next, click “Save.” You will use this worksheet to answer the questions in Part 2

Chapter 9: Applying Excel Data Revenue $16.50 q Cost of ingredients $6.25 q Wages and salaries $10,400 Utilities $800 + $0.20 q Rent $2,200 Miscellaneous $600 + $0.80 q Actual results: Revenue $27,920 Cost of ingredients $11,110 Wages and salaries $10,130 Utilities $1,080 Rent $2,200 Miscellaneous $2,240 Planning budget activity 1,800 meals served Actual activity 1,700 meals served Enter a formula into each of the cells marked with a ? below Review Problem: Variance Analysis Using a Flexible Budget Construct a flexible budget performance report Revenue and Actual Spending Flexible Activity Planning Results Variances Budget Variances Budget Meals served ? ? ? Revenue ? ? ? ? ? Expenses: Cost of ingredients ? ? ? ? ? Wages and salaries ? ? ? ? ? Utilities ? ? ? ? ? Rent ? ? ? ? ? Miscellaneous ? ? ? ? ? Total expenses ? ? ? ? ? Net operating income ? ? ? ? ?

Explanation / Answer

Answer

Revenue

and

Actual

Spending

Flexible

Activity

Planning

Results

Variances

Budget

Variances

Budget

Meals served

$               1,700.00

$                           -  

$   1,700.00

$      100.00

Unfavourable

$   1,800.00

Revenue

$             27,920.00

$                    130.00

Unfavourable

$ 28,050.00

$   1,650.00

Unfavourable

$ 29,700.00

Expenses:

Cost of ingredients

$             11,110.00

$                     485.00

Unfavourable

$ 10,625.00

$      625.00

Favourable

$ 11,250.00

Wages and salaries

$             10,130.00

$                     270.00

Favourable

$ 10,400.00

$             -  

Favourable/None

$ 10,400.00

Utilities

$              1,080.00

$                      60.00

Favourable

$   1,140.00

$        20.00

Favourable

$   1,160.00

Rent

$               2,200.00

$                           -  

Favourable/None

$   2,200.00

$             -  

Favourable/None

$   2,200.00

Miscellaneous

$               2,240.00

$                     280.00

Unfavourable

$   1,960.00

$        80.00

Favourable

$   2,040.00

Total expenses

$             26,760.00

$                     435.00

Unfavourable

$ 26,325.00

$      725.00

Favourable

$ 27,050.00

Net operating income

$               1,160.00

$                     565.00

Unfavourable

$   1,725.00

$      925.00

Unfavourable

$   2,650.00

Revenue

and

Actual

Spending

Flexible

Activity

Planning

Results

Variances

Budget

Variances

Budget

[A]

[A – B]

[B]

[B – C]

[C]

Meals served

1700

[A – B]

1700

[B – C]

1800

Revenue

27920

[A – B]

=1700*16.5

[B – C]

=1800*16.5

Expenses:

[A – B]

[B – C]

Cost of ingredients

11110

[A – B]

=1700*6.25

[B – C]

=1800*6.25

Wages and salaries

10130

[A – B]

10400

[B – C]

10400

Utilities

1080

[A – B]

=800+(1700*0.2)

[B – C]

=800+(1800*0.2)

Rent

2200

[A – B]

2200

[B – C]

2200

Miscellaneous

2240

[A – B]

=600+(1700*0.8)

[B – C]

=600+(1800*0.8)

Total expenses

TOTAL

[A – B]

TOTAL

[B – C]

TOTAL

Net operating income

Revenue – Total expense

[A – B]

Revenue – Total expense

[B – C]

Revenue – Total expense

Revenue

and

Actual

Spending

Flexible

Activity

Planning

Results

Variances

Budget

Variances

Budget

Meals served

$               1,700.00

$                           -  

$   1,700.00

$      100.00

Unfavourable

$   1,800.00

Revenue

$             27,920.00

$                    130.00

Unfavourable

$ 28,050.00

$   1,650.00

Unfavourable

$ 29,700.00

Expenses:

Cost of ingredients

$             11,110.00

$                     485.00

Unfavourable

$ 10,625.00

$      625.00

Favourable

$ 11,250.00

Wages and salaries

$             10,130.00

$                     270.00

Favourable

$ 10,400.00

$             -  

Favourable/None

$ 10,400.00

Utilities

$              1,080.00

$                      60.00

Favourable

$   1,140.00

$        20.00

Favourable

$   1,160.00

Rent

$               2,200.00

$                           -  

Favourable/None

$   2,200.00

$             -  

Favourable/None

$   2,200.00

Miscellaneous

$               2,240.00

$                     280.00

Unfavourable

$   1,960.00

$        80.00

Favourable

$   2,040.00

Total expenses

$             26,760.00

$                     435.00

Unfavourable

$ 26,325.00

$      725.00

Favourable

$ 27,050.00

Net operating income

$               1,160.00

$                     565.00

Unfavourable

$   1,725.00

$      925.00

Unfavourable

$   2,650.00

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