C. Use the flexible budget to compute ACTIVITY variances: only because of the difference between 550 vs. 500 Larry's Lawn Service Questions For the Month Ended June 30 variances 8. Because 550 lawns are cared instead of 500, revenue increase by? (Flexible Revenue/Cost Planning Flexible budget - 9. Because 550 lawns are cared instead of 500, costs/expenses increase b Formulas Budget Budget Planning Favorable? Number of lawns (Q) 500 550 ($750) $ 37,500 Revenue Expenses: Wages and salaries Gasoline and supplies Equipment maintenance Office and shop utilities Office and shop rent Equipment Depreciation Insurance Total expenses Net operating income ($5,000 + $30Q) $ ($9Q) ($3Q) ($1,000) ($2,000) ($2,500) ($1,000) 20,000 4,500 1,500 1,000 2,000 2,500 1,000 32,500 5,000