Mnzel GmbH helps prospective homeowners of substantial means to find low-cost financing and assists existing homeowners in

Münzel GmbH helps prospective homeowners of substantial means to find low-cost financing and assists existing homeowners in refinancing their current loans at lower interest rates. Münzel works only for customers with excellent borrowing potential. Hence, Münzel is able to obtain a loan for every customer with whom it decides to work.

Münzel charges clients 0.5% of the loan amount it arranges. In 2016, the average loan amount per customer was €199 000. In 2017, the average loan amount was €200 210. In its 2022 flexible budgeting system, Münzel assumes the average loan amount will be €200 000.

Budgeted cost data per loan application for 2022 are:

Office support costs for November 2022 were €33 500. The average loan amount for November 2022 was €224 000. Münzel received its 0.5% fee on all loans. Prepare a Level 2 variance analysis of Münzel GmbH for November 2022. Münzel’s output measure in its flexible budgeting system is the number of loan applications.
3 Calculate professional labour price and efficiency variances for November 2022. (Calculate labour price on a per-hour basis.)
4 What factors would you consider in evaluating the effectiveness of professional labour in November 2022?

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Professional labour: 6 budgeted hours at a budgeted rate of 40 per hour Loan filing fees: budgeted at 100 per loan application Credit checks: budgeted at 120 per loan application Courier mailings: budgeted at 50 per loan application. Office support (the costs of leases, secretarial workers and others) is budgeted to be 31 000 per month. Mnzel GmbH views this amount as a fixed cost. Required 1 Prepare a static budget for November 2022 assuming 90 loan applications. 2 Actual loan applications in November 2022 were 120. Other actual data for November 2022 were: Professional labour: 7.2 hours per loan application at 42 per hour Loan filing fees: 100 per loan application Credit checks: 125 per loan application Courier mailings: 54 per loan application.