. ABC Pty Ltd operates a no frills hairdressing salon with a single service offering: wash, cut and blowdry (WCD). The price of this service is $40.

The budget for September is shown below. Actual figures for September were: sales revenue of$30,400 for 760 units; supplies $2,000, variable utilities $1,520; labour costs $16,000; and fixedoverhead $9,000.

Sales (WCDs) 800

Sales Revenue $32,000

Supplies $1,600

Labour $16,000

Variable utilities $1,600

Fixed overheads $9,000

Profit/(loss) $3,800

Required:

(a) make a variance analysis for September. The analysis should show the original budget, a flexedbudget, actuals and relevant variances.

To assist the Managing Director of ABC Pty Ltd in controlling the business, briefly interpret andprovide possible explanations for the variances.