Parameters - budget Parameters - actual Quarters Quarters 1 2 3 4 total 1 2 3 4 Year Quarter over quarter Sales ( hours): Sales ( hours): change> > > Budgeted total sales in hours Actual total sales Budgeted commercial sales in hours Actual sales - commercial Budgeted residential sales in hours Actual sales - residential Selling rate( $/hr) Selling rate ( $/hr): Selling price per hour (commercial) Actual selling price - commercial Selling price per hour (residential) Actual sellling price - residential Direct labour expense ( $/hr): Direct labour expense ( $/hr): Cleaning Supply usage ( litre / labour hour): Actual Cleaning Supply usage ( litre / labour hour): Commercial Commercial Residential Residential Cleaning Supply expense ( $/litre)): Actual Cleaning Supply expense ( $/litre)): Fixed overhead: Actual Fixed overhead: Receptionist Receptionist Depreciation Depreciation Gas Gas Maintenance Maintenance Total no. of hours actually paid to employees Breakdown: Commercial Residential Actual hours worked Direct labour cost Unproductive ( unbilled ) factorStatic Budget Variable costs residential Total variable costs Labour budget Commercial Residential Total labour Fixed Overhead: Receptionist Depreciation Gas Maintenance Total Moonlight Clean Services Operating Budget for the period Jan- Dec'Z _._ (Company name) Actual Budget Operating Budget for the period Jan - Dec '21 Quarters 1 2 3 4 Year Labour budget Commercial Residential Total labour Fixed Overhead: Receptionist Depreciation Gas Maintenance TotalSCS Flexible Budget Flexible budget for the period Jan - Dec '20 Quarters 2 3 4 Year Labour budget Commercial Residential Total labour Fixed Overhead: Receptionist Depreciation Gas Maintenance TotalActual for the year Static for the year Variance U / F Actual for the year Flexible for the year Variance U / F Sales budget Sales Commercial Sales residential Total sales Direct material budget Variable costs commercial Variable costs residential Total variable costs Labour budget Commercial Residential Total labour Fixed Overhead: Receptionist Depreciation Gas Maintenance TotalTotal Total Price Variance Quantity Variance Total Variance Copy Material VariancesB , C D E F G H l J K L Labour - Residential Actual Hours - AH Standard Rate -SR Total Standard Hours - SH Standard Rate - SR Total Rate Variance Efficiency Variance Total Variance Background: Moonlight Clean Services (MES) is a local business in the Tri-cities area. It provides cleaning services to residential households and commercial establishments. Both households and businesses sign contracts with MCS. As the contractor, MCS dispatches its crew to the locations. The crew performs the cleaning asper the contracts and reports back to the company main desk. The main desk then prepares the invoiceand sends them to the clients. Clients have one day to pay the invoice. Sales volume can vary from one quarter to the next. In terms of expenses, the main expense for MCS relates to labour. They pay crew members competitivewages and benefits. The wage rate is calculated on an hourly basis and is xed for the entire yea r. The next expense item is cleaning supplies. MCS accounts for cleaning supplies relative to the hours worked. For example, they estimate that cleaning supplies are consumed at a rate of 0.2 litres per labour hour. This is a good measure because the longer it takes for a site to be cleaned, the more the consumption of cleaning supplies. Cleaning supplies are procured from a prominent vendor and the cost is xed for the entire year. Sometimes clients are not happy about the cleaning services and register a complaint. In that case, the crew is dispatched again for a second cleaning. The hours accruing from such scenarios are not billed to the client as this constitutes a 'service recovenf. However, the crew is paid for such hours. MCS maintains arecord of these hours and classifies them as 'unproductive hours', or 'unbilled hours. This is calculated as a percentage of revenue earning hours (e.g., 10% of revenue generating hours). For the purpose of this assignment, assume that there is no consumption of cleaning materials when this second cleaning is being done. Budget for the year 2021: The budget for the year 2021 was prepared in December 2020 and had the following components: Revenue: The revenue is calculated as number of hours that the crew works on a site, multiplied by the contracted rate with the client. The hours worked in the residential and commercial segments are shown separately, and there is a total for the combined hours worked. The revenue for each segment is arrived at by multiplying the hours for the segment by the rate. The budget is prepared for four quarters, one to four. For 2021, the budgeted sales hours were: Quarter 1 2 3 4 Budgeted commercial sales in 4,000 4,200 4,000 3,500 hours Budgeted residential sales in hours 2,100 2,100 1,800 2,100 For 2021, the budgeted selling price per hours were: Quarter 1 2 3 4 Selling price per hour [commercial] $39 $39 $39 $39 Selling price per hour (residential) $42 S42 S42 S42 Direct Labour expense: MCS will pay its employees an hourly rate of $26 for the entire year. Cleaning supply usage: The budgeted usage is 0.28 litre/ labour hour for the commercial segment and 0.17 litre! labour hour for the residential segment. This is constant for the entire year. Cleaning supply expense: Budgeted expense is $5.70 per litre for the entire year. 4|Page Fixed overhead: To support the cleaning operations, there are four items of expenditure. These are designated as overheads and their budgeted expenses are as follows: General Administration related: Budgeted expense is $6,000 per quarter and is the same for all four quarters. Depreciation: This relates to the depreciation of vehicles used to transport employees to client locations. Budgeted expense is $8,700 per quarter and is the same for all four quarters. Employee benefit related: Budgeted expenditure on gas is $6,000 and is the same for all four quarters. Maintenance: Budgeted expenditure on Maintenance related is $1,200 per quarter and is the same for all four quarters. Actual results for the year 2021. It is nowJanuarv 7, 2022, and Moonlight Clean Services [MCS) is comparing the actual expenses against to budget. Here is what they found. Revenue: For 2021, the actual sales hours were: Quarter 1 2 3 4 Actual sales - commercial 3,700 4,300 3,900 3,900 Actual sales - residential 2,250 2,350 1,800 2,000 For 2021, the actual hourlvr revenue was: Quarter 1 2 3 4 Actual selling price - commercial $38 $38 $38 $38 Actual selling price - residential $46 $46 $46 $46 5|Page Direct Labour expense: MCS paid its employees an hourly rate of $28 for the entire year. Cleaning supply usage: The actual usage was 0.27 litre/ labour hour for the commercial segment and 0.15 litre! labour hour for the residential segment. This was constant for the entire year. Cleaning supply expense: Actual expense was $5.65 per liter for the entire year. Fixed overhead: To support the cleaning operations, there are four items of expenditure. These are designated as overheads and their budgeted expenses are as follows: General Administration related: Actual expense per quarter was as follows: Quarter 1 2 3 4 Amount 5,200 6,400 5,900 5,800 Depreciation: This relates to the depreciation of vehicles used to transport employees to client locations. Actual expense was $8,500 per quarter and was the same for all four quarters. Employee benefit related: Actual expense per quarter was as follows: Quarter 1 2 3 4 Amou n't 8,300 7,800 8,100 8,300 Maintenance: Actual expense per uarter was as follows: Quarter 1 2 3 4 Amou n't 1,300 1,000 1,200 1,000 Unproductive (unbilled) factor: Cleaning crews had to work 14% over the revenue generating hours to attend to complaints and do a second cleaning. These hours were not billable to clients, but Moonlight Clean Services [MCS] would paythe employees for this time they worked. For the purpose of this assignment, assume that there is no consumption of cleaning materials when this second cleaning was done. 6|Page Required: Part A: For this part you will use the template provided in Excel Workbook format. Complete the following steps in sequence: Step 3 Spreadsheet title Activity One Input Database Populate the section A4:GZ4 with data from the above case and develop the budget parameters. Two Input Database Populate the section K4:Q35 with data from the above case and develop the actual parameters. Three Static Budget Populate the section A7:F2JI with data from the spreadsheet 'lnput Database' and develop the static budget. Four Actual Budget Populate the section A7:F2JI with data from the spreadsheet 'lnput Database' and develop the actual budget. Five Flexible Budget Populate the section A7:F2JI with data from the spreadsheet 'lnput Database' and develop the flexible budget. Six Var Analysis Static and Populate the section A5:E26 with data from the Flex spreadsheets 'Static Budget' and 'Actual Budget' and develop the static budget variance. Seven Var Analysis Static and Populate the section GSJZG with data from the Flex spreadsheet 'Actual Budget' and 'Flexible Budget' and develop the flexible budget variance. Eight Material variances Using applicable data complete the analysis of Material variances for both the commercial and residential segments. Nine Labour variances Using applicable data complete the analysis of Material variances for both the commercial and residential segments. 7|Page