1.In the table below, calculate Total Variances for Larry's Lawn Service. Reven ue & Larry's Lawn Service Spendi Activit For the Month ng Ending June 30 Actual Total Varian Planning Results ce Budget Budget Variance Number of Lawns 550 550 Varian Flexible ce 500 Revenue $750 43,000 37,500 5,500 Wages $5,000+ $300 23,500 120,000 Gasoline |$90 5,100 14,500 Maintenance S30 1,300 11,500 Utilities $1,000 950 1,000 Rent $2,000 2.0001 12,000 Depreciation $2,500 2,500 12,500 Insurance $1,000 1,200 1,000 200 U 36.550 32.500 total expenses Operating income 6,450 6,650 5,000 2. In the table above, prepare the flexible budget for Larry's Lawn Service at the 550 lawn level of activity. You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: 1. Prepare the Planning Budget 2. Prepare the Flexible Budget Utilities $16.500 + 50.14 per machine hour Maintenance $38.100 + S1.40 per machine hour Supplies 50.40 per machine hour Indirect Labor94,200 + $2.00 per machine hour Depreciation $68,100 March Actual Results Spending March Activity March Total Variances Flexible Variances Planning Variances Budget Budget Units 10,000 MHS 16,000 16.000 18,000 Utilities 120.820 Maintenance 57.100 Supplies 7,000 Indirect Labor 131.100 Depreciation 69.800 Total 285,820