Philadelphia Financial originates mortgage loans for residential housing. The company charges a service eS f pete Nonmanufacturing Cost fee for processing loan applications that is set twice a year based cost of processing a loan app Waranioes cation. For the first half of this year, Philadelphia Financial €stimated hat it wou, pores 75 ES (LO 4,5) 3 Correspondence, credit reports, supplies, and other materials that vary with each lo e assistant at an estimated cost of $20,000 per year. The cost to lease office pace and pay utilities and +2o other related costs are estimated at $58,000 per year. TSS s2 9 During the first six months of this year, Philadelphia Financial processed 79 loaxs. Cost of materi- Ws 5)

als, credit reports, and other items related to loan processing were V8 perecent higheUr stha n exfpeacete d for the SO8XIES Ys:>

volume of loans processed. Vo 7§i 60D yer. eh 7i ay e )

The loan processor and her assistant cost $30 for the si epee Tee an RS fe office 237 /

costs were $21,900. Ac = Si9oo0 CCC mes see os Me ZF @ YS tack =

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‘: 20 Yo4.y a Required SBSoo 2 Let To [oae ken alyze the variances for Phi:l adelphia‘a FiFin ancial. (Hint: ; Loans are the output.)