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Variance analysis, nonmanufacturing setting. Joyce Brown has run Medical Maids, a specialty clean- ing service for medical and dental offices, for the past 10 years. Her static budget and actual results for April 2017 are shown below. Joyce has one employee who has been with her for all 10 years that she has been in business. In addition, at any given time she also employs two other less-experienced workers. It usually takes each em- ployee 2 hours to clean an office, regardless of his or her experience. Brown pays her experienced employee $30 per office and the other two employees $15 per office. There were no wage increases in April. Medical Maids Actual and Budgeted Income Statements For the Month Ended April 30, 2017 Budget Actual 160 Offices cleaned 140 $36,000 $26,600 Revenue Variable costs: Costs of supplies 630 680 Labor 3,360 3,990 22,610 4,900 $17,710 4,200 Total variable costs 4,880 31,120 4,900 $26,220 Contribution margin Fixed costs Operating income

Variance analysis, nonmanufacturing setting. Joyce Brown has run Medical Maids, a specialty clean- ing service for medical and dental offices, for the past 10 years. Her static budget and actual results for April 2017 are shown below. Joyce has one employee who has been with her for all 10 years that she has been in business. In addition, at any given time she also employs two other less-experienced workers. It usually takes each em- ployee 2 hours to clean an office, regardless of his or her experience. Brown pays her experienced employee $30 per office and the other two employees $15 per office. There were no wage increases in April. Medical Maids Actual and Budgeted Income Statements For the Month Ended April 30, 2017 Budget Actual 160 Offices cleaned 140 $36,000 $26,600 Revenue Variable costs: Costs of supplies 630 680 Labor 3,360 3,990 22,610 4,900 $17,710 4,200 Total variable costs 4,880 31,120 4,900 $26,220 Contribution margin Fixed costs Operating income

Essentials of Business Analytics (MindTap Course List)
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter11: Linear Optimization Models
Section: Chapter Questions
Problem 19P: The Calhoun Textile Mill is in the process of deciding on a production schedule. It wishes to know...
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Q.Compute the sales price variance and the labor efficiency variance for each labor type.

Variance analysis, nonmanufacturing setting. Joyce Brown has run Medical Maids, a specialty clean- ing service for medical and dental offices, for the past 10 years. Her static budget and actual results for April 2017 are shown below. Joyce has one employee who has been with her for all 10 years that she has been in business. In addition, at any given time she also employs two other less-experienced workers. It usually takes each em- ployee 2 hours to clean an office, regardless of his or her experience. Brown pays her experienced employee $30 per office and the other two employees $15 per office. There were no wage increases in April. Medical Maids Actual and Budgeted Income Statements For the Month Ended April 30, 2017 Budget Actual 160 Offices cleaned 140 $36,000 $26,600 Revenue Variable costs: Costs of supplies 630 680 Labor 3,360 3,990 22,610 4,900 $17,710 4,200 Total variable costs 4,880 31,120 4,900 $26,220 Contribution margin Fixed costs Operating income
Transcribed Image Text:Variance analysis, nonmanufacturing setting. Joyce Brown has run Medical Maids, a specialty clean- ing service for medical and dental offices, for the past 10 years. Her static budget and actual results for April 2017 are shown below. Joyce has one employee who has been with her for all 10 years that she has been in business. In addition, at any given time she also employs two other less-experienced workers. It usually takes each em- ployee 2 hours to clean an office, regardless of his or her experience. Brown pays her experienced employee $30 per office and the other two employees $15 per office. There were no wage increases in April. Medical Maids Actual and Budgeted Income Statements For the Month Ended April 30, 2017 Budget Actual 160 Offices cleaned 140 $36,000 $26,600 Revenue Variable costs: Costs of supplies 630 680 Labor 3,360 3,990 22,610 4,900 $17,710 4,200 Total variable costs 4,880 31,120 4,900 $26,220 Contribution margin Fixed costs Operating income
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