Budget Actual
Car modification 410 360
Revenue $63,580 $72,000
Variable costs:
1- Cost of supplies 1,386 1,260
2- Labor 7,920 6,830
Total variable cost 8,778 7,980
Contribution margin 49,742 47,020
Fixed cost 10,780 9,800
Operating income 38,962 37,220
1- How many cars on average did Solo budget for each employee? How many cars did each employee actually fixed?
2- Prepare a flexible budget for Jun 2019?
3- Compute sales price variance and the labor efficiency variance for each labor type?
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