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	?	?		?	?		?

Answer 1

• All working forms part of the answer
• Variance analysis worksheet as asked in question is filled below:

		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

• Working for calculation used in above table

		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