The spreadsheet is to provide details of cost for proving the services.
The cost are classified as the
direct labor and
The spreadsheet provides details of direct and indirect expenses that are required for completing the job. In order to use this spreadsheet effectively the steps that should be followed are:
1. Go to the data tab of the spreadsheet.
2. Insert the rate per unit of estimated direct material cost in the table 1.
3. In table 2 insert the estimated hourly labor cost.
4. In table 4, insert the estimated indirect overhead cost.
5. The budgeted labor hour should be included in the table 4 for calculating budgeted overhead rate.
The result is obtained in the layout spreadsheet.
The layout spreadsheet has three tables and a cost summary.
These tables include both the estimated cost and the actual cost.
In addition to this the resulting differences are also included in the tables.
The cost summary provides a bird eye view of the entire cost structure.
1. It is vulnerable as the cost can be manipulated easily.
2. The result is not 100% accurate as it is affected by human error.
3. In the spreadsheet model it is very difficult to identify the problem.
Easy to use
Less time consuming