1) Flexible budget and total variance decomposition Activity variance Favorable or Unfavorable Spending variance Favorable or Unfavorable Rate per pound Master budget 9,500 125,000 Flexible Budget 11,900 156,600 Actual 11,900 156,600 0 0 Activity Client nights Pounds of laundry processed Costs Laundry labor Supplies Water & water heating & softening Maintenance Supervisor's salary Allocated administrative costs Equipment depreciation Total 2,275.00 284.00 442.00 347.00 U U U U U $ 9,000.00 $ | $ 1,125.00 $ $ 1,750.00 $ $ 1,375.00 $ $ 3,125.00 $ $ 4,000.00 $ $ 1,250.00 $ $ 21,625.00 $ $ $ $ $ $ $ $ $ 11,275.00 $ 1,409.00 $ 2,192.00 $ 1,722.00 $ 3,125.00 $ 4,000.00 $ 1,250.00 $ 24,974.00 $ 1,237.00 466.00 308.00 478.00 625.00 1,000.00 $ $ $ $ $ $ $ $ 12,512.00 1,875.00 2,500.00 2,200.00 3,750.00 5,000.00 1,250.00 29,087.00 U U 3,349.00 U 4,113.00 U 2) Laundry labor - Spending variance analysis Actual labor minutes at budgeted labor rate Client nights Pounds of laundry processed 11,900 156,600 Budgeted labor cost Actual labor cost 12,512.34 $ Budgeted labor rate per hour Actual labor rate per hour $ $ 9.00 10.20 Labor efficiency variance Favorable or Unfavorable Labor rate variance Favorable or Unfavorable Budgeted labor rate per minute Actual labor rate per minute $ $ 8.00 0.17 Budgeted labor minutes per pound 0.48