a) Using the data provided in the Data Task B worksheet, complete the flexible budget for T&K Solutions and calculate flexible budget variances using the proforma in Schedule 2. For each variance, indicate if it is U (unfavourable), F (favourable). Enter your results into Blackboard.

b) Using the graph function in excel and the worksheet Budget Graphs, create two separate graphs to visually display;

i) 2018 actual income compared to flexible budget income and prior year (2017)

income for each service

ii) Variance by cost category for the firm as a whole

DATA FOR TASK B:
2018 BUDGETED DATA	Taxation	Bookkeeping	Advisory	Total
Billable hours	4400	1200	5200	10800
Professional labour hours	4600	1320	5720	11640
Charge out rate per billable hour	$ 210.00	$ 180.00	$ 210.00
Professional labour per worked hour	$ 90.00	$ 75.00	$ 90.00
Variable overhead				$ 145,000	Note 1
Fixed overhead				$ 610,000	Note 2
2018 ACTUAL COSTS	Taxation	Bookkeeping	Advisory	Total
Billable hours	4200	1400	5900	11500
Professional labour hours	4400	1500	6400	12300
Charge out rate per billable hour	$ 210.00	$ 185.00	$ 210.00
Professional salary paid	$ 386,000	$ 112,500	$ 586,000
Actual variable overhead paid				$ 162,000	Note 1
Actual fixed overheads paid				$ 597,000	Note 2
Note 1: Variable overhead varies with the billable hours
Note 2: The partners have decided a fair allocation of fixed overheads is as a percentage of floor space.
	Taxation	Bookkeeping	Advisory	Total
Floor Space by service	130	55	195	380	sqm

TASK B SCHEDULE 2:	Prepare the Flexible Budgets for each service department for the year 2018
Allocation of variable overhead:	Budgeted	Actual
Variable overhead rate:			per billable hour
TAXATION
Billable hours	Actual	Flexible budget variance	U/F	Flexible Budget	Volume variance	U/F	Static Budget
	4,200	-	-	4,200	200	U	4,400
Revenue
Professional salaries
Variable overhead
Fixed overheads
Profit / Loss
BOOKKEEPING
Billable hours	Actual	Flexible budget variance	U/F	Flexible Budget	Volume variance	U/F	Static Budget
Revenue
Professional salaries
Variable overhead
Fixed Overhead
Profit / Loss
ADVISORY
Billable hours	Actual	Flexible budget variance	U/F	Flexible Budget	Volume variance	U/F	Static Budget
Revenue
Professional salaries
Variable overhead
Fixed Overhead
Profit / Loss