The Excel worksheet form that appears below is to be used to recreate the Review Problem related to Harrald's Fish House. Download the workbook containing this from Connect. On the website you will also receive instructions about how to use this worksheet form. You should proceed to the requirements below only after completing your worksheet.

Required:

1. 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.

a. What is the activity variance for revenue? Explain this variance.

b. What is the spending variance for the cost of ingredients? Explain this variance.

2. Revise the data in your worksheet to reflect the results for the following year:

Using the flexible budget performance report, briefly evaluate the company's performance for the year and indicate where attention should be focused?

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1 Chapter 10: Applying Excel 3 Data 4 Revenue 5 Cost of ingredients 6 Wages and salanes 7 Utilities 8 Rent 516.50 q 56 25 q 50.20 q 50.80 510.400 $800+ 52 200 Miscellaneous S600+ 1 Actual results 12 Revenue 13 Cost of ingredients 14 Wages and salaries 15 Utilities 16 Rent 17 Miscellaneous S27,920 S11110 $10,130 $1,080 52.200 52 240 9 Planning budget activity 20 Actual activity 21 22 Enter a forrmula into each of the cells marked with a ? 5elow 23 Review Problem: Variance Analysis Using a Flexible Budget 24 25 Construct a flexible budget performance report 26 27 28 29 30 Meals served 31 Revenue 32 Expenses 33 Cast of ingredients 34 Wages and salanies 35 Utilities 36 Rent 37 Miscellaneous 38 Total expenses 39 Net operating income 40 1.800 meals served 1,700 meals served Revenue Planning Activity Budget Variances Flexibie Spending BudoetVariances Actual Results r10 Form Filed n Ch 10 Form Data $16.50q $6.25q $800 $0.20q $600 $0.80q Wages and salarles $10,400 $2,200 Actual results: $28,900 $11,300 $10,300 $1,120 $2,300 $2,020 Wages and salarles . 9 Planning budget activity 1,700 meals served 1,800 meals served