Question

asis(1) - O Search Patrick Hoyack 0 w View Help Share ab Wrap Text General Auto Sum LIX 4 Insert Delete Format Merge & Center *2.09 Ayo Sort & Find & Filter Select $ % 9 Conditional Format as Cell Formatting Table Table Styles Ideas Clear Alignment F Number Styles Cells Editing Ideas M N O P Q R S T U L Forecast 2 In order to figure out whether the manager is forecasting to spend too much or not enough in his labor forecast, please calculate the labor cost variance to budget on a sales adjusted basis and answer Spa Department Forecast for: Month of January Budget Forecast CV is cost variance Sales $ 525,000 $ 500,000 26.1% EV is earned variance $ 139,125 26.5% $ 130,500 Labor AC is actual costs $369,500 How much was he forecasting to spend over or under budget? $385.875 YES / NO Did the manager spend too much in labor Cost? If you think he planning on spending too much on labor, why and by how much? ENG nding on labor costs. i Trysert prescr' F12

Need some help explaining for Forecast #2.

Answer 1

SPA dept	Forecast (January)
		Forecast	Budget
	Sales	$5,25,000.00	$5,00,000.00	CV is cost variance
	Labor	$1,39,125.00	$1,30,500.00	EV is earned value
	CV = EV - AC	$3,85,875.00	$3,69,500.00	AC is actual costs

Did the Manager spend too much in the Labour Cost -

No as He will spend not much.

How much was he forecasting to spend over or under budget ?	6.61%
He was willing to spend 6.61% over budget

(139125-130500)/130500 = 6.61%

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