Function: IF; Formula: Multiply, Subtract; Cell Referencing Using Excel to Prepare a Static and Flexible Direct Labor Budget PROBLEM Rooney Company provided the following information needed for the preparation of its static and flexible budget reports during January, 2022. Direct labor rate per direct labor hour Actual direct labor cost, January Expected direct labor hours per month Actual direct labor hours, January $ $ 20.00 206,000 10,000 10,400 Prepare the following budget reports for January 2022 using Excels' IF unction, and evaluate the usefulness of each report. a. A static budget report b. A flexible budget report Student Work Area Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem area or work area as indicated. Use the IF function with cell references label as Favorable or Unfavorable. a. b. Direct labor Direct labor Rooney Company Static Direct Labor Budget Report For the Month Ended January 31, 2022 Budget Actual Rooney Company Flexible Direct Labor Budget Report For the Month Ended January 31, 2022 Budget Actual C. Which budget report is more useful? Difference Difference mucked!
Function: IF; Formula: Multiply, Subtract; Cell Referencing Using Excel to Prepare a Static and Flexible Direct Labor Budget PROBLEM Rooney Company provided the following information needed for the preparation of its static and flexible budget reports during January, 2022. Direct labor rate per direct labor hour Actual direct labor cost, January Expected direct labor hours per month Actual direct labor hours, January $ $ 20.00 206,000 10,000 10,400 Prepare the following budget reports for January 2022 using Excels' IF unction, and evaluate the usefulness of each report. a. A static budget report b. A flexible budget report Student Work Area Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem area or work area as indicated. Use the IF function with cell references label as Favorable or Unfavorable. a. b. Direct labor Direct labor Rooney Company Static Direct Labor Budget Report For the Month Ended January 31, 2022 Budget Actual Rooney Company Flexible Direct Labor Budget Report For the Month Ended January 31, 2022 Budget Actual C. Which budget report is more useful? Difference Difference mucked!
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Please use Excel.
Transcribed Image Text:Function: IF; Formula: Multiply, Subtract; Cell Referencing
Using Excel to Prepare a Static and Flexible Direct Labor Budget
PROBLEM
Rooney Company provided the following information needed for the
preparation of its static and flexible budget reports during January,
2022.
Direct labor rate per direct labor hour
Actual direct labor cost, January
Expected direct labor hours per month
Actual direct labor hours, January
$
20.00
206,000
10,000
10,400
Prepare the following budget reports for January 2022 using Excels' IF
function, and evaluate the usefulness of each report.
a. A static budget report
b. A flexible budget report
Student Work Area
Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with
cell references to the Problem area or work area as indicated. Use the IF function with cell references to
label as Favorable or Unfavorable.
a.
b.
C.
Direct labor
Direct labor
Rooney Company
Static Direct Labor Budget Report
For the Month Ended January 31, 2022
Budget
Actual
Rooney Company
Flexible Direct Labor Budget Report
For the Month Ended January 31, 2022
Budget
Actual
Which budget report is more useful?
because the budget is
Difference
budget does not provide a proper basis for evaluating performance
the hours actually worked.
Difference
because the budget is
budget provides a proper basis for evaluating performance
the hours actually worked.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education