Perfect Parties, Inc. has several divisions. One division provides birthday parties at their facility. Each party sold provides entertainment, decorations, food, and party favors for 10 children. The bookkeeper has prepared a report comparing actual results for the month of June to budgeted results. Perfect Parties Birthday Party Division Analysis of Revenues and Costs For the Month Ended June 30 Planning Actual Budget Results Variances Number of parties 80 92 Revenue $36,000 $39,560 $3,560 F Expenses: Food costs 7,200 8,648 1,448 U Party supplies 3,200 3,404 204 U 5 Party worker wages 6,400 7,728 1,328 U 5 Administrative salaries 3,700 3,500 200 F 7 Equipment depreciation 1,200 1,200 O None 3 Rent 5,000 5,000 O None 9 Total expense 26,700 29,480 2,780 U ONet operating income $9,300 $10,080 $780 F Food costs, party supplies, and party worker wages are variable costs. Administrative salaries, equipment depreciation, and rent are fixed costs.