Question

Overview:
You are the Budget Analyst for a small company. One of you primary tasks is to carefully monitor expenses to ensure you do not spend more than allocated/budgeted by the top management.

Requirements:
Your manager has asked you to generate a report using the following criteria:

1)   Develop a table using the information provided in Attachment 1 (do not forget columns for rent and insurance).
2)   Provide totals for each expense category (e.g., salary) and for each month.
3)   Calculate the following:
a)   Average of the actual expenses incurred for each expenses category.
b)   Estimate to Complete (ETC). This is the amount you are forecasting will be spent for each of the expense categories for the remainder of the year. (Use the monthly average times the number of remaining months except for the insurance payment)
c)   Estimate at Completion (EAC) – total actual expenses plus the ETC.
d)   Difference between the budget (attachment 1) and your EAC for each expense category.
4)   Generate a pie chart based on the total actual expenses for each category (e.g., Salary, Supplies, etc.). Include the following in the chart:
a)   Chart Title as “Total Actual Expenses”
b)   Data Labels as a percentage of the total expense and including the category name
5)   Generate a report to your supervisor indicating your findings. Include the following:
a)   Introduction explaining why you have decided to perform this analysis.
b)   Methodology utilized.
c)   Findings of your analysis. Develop a single table that shows all calculations. Provide a narrative of the significant differences between the budget and EAC.
d)   Recommendations. Suggest a course of action that should be taken in order to ensure that the established budget is not exceeded.

What to Turn In?
1)   Your written report to your supervisor with charts embedded into the text to support your findings.
2)   Your spreadsheet file.

The grade will be based on completion of the requirements stated above and your recommendation to meet the organizational goal of not exceeding your budget.

Both files must be title with your name in the filename (ex: Mosher Tool 1) and be submitted as indicated in the course schedule.

Attachment 1

   Salaries   Supplies   Phone   Utilities   Travel   Training   Advertising
Jan   12,543   1,256 159   485   1,254   546   658
Feb   9,953 753 175   387   865 897   799
Mar   11,245   1,089 236   446   2,879   547   589
Apr   13,678   758 187   478 299   541
May   12,005   589 145   515   2,898   684   879
Jun   10,745   968 198   625   1,985   486   632
Jul   11,486   1,546 230   695   1,656   525   823
Aug                          
Sep                          
Oct                          
Nov                          
Dec                          

•   Monthly rent for the office is $2,750
•   Insurance is $187 (per month) for the first 3 months and goes up to $195 in April

Annual Budget Information:
Salaries   135,000  
Supplies   12,000
Phone       2,400
Utilities   5,750
Travel       12,000
Training   7,000
Rent       33,000
Insurance   2,136
Advertising   10,000

Answer 1