1. XYZ Corporation is a water well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for July.

			Fixed Element per Month				Variable Element per Well Serviced			Actual Total for July
Revenue						$		5,700	$		145,100
Employee salaries and wages		$		50,300		$		1,200	$		79,300
Servicing materials						$		700	$		12,200
Other expenses		$		31,600					$		31,400

When the company prepared its planning budget at the beginning of July, it assumed that 20 wells would have been serviced. However, 22 wells were actually serviced during July. Show your work below.

What is the activity variance for "Other expenses" for July ? $______________

What is the activity variance for Employee salaries and wages? $______________