Chase Green Racing, Inc., provides a full range of services to thoroughbred horse owners including boarding, training, and veterinary care. The table below provides both the budgeted and actual statements of operating income for the first quarter of 2018. Budget Actual Service revenues $3,800,000 $3,950,000 Less: Operating expenses Labor wages expense 1,750,000 1,820,000 Insurance expense 600,000 575,000 Rent expense 225,000 225,000 Supplies and feed expense 750,000 795,000 Operating income $ 475,000 $ 535,000 Required: Prepare a variance analysis to explain the differences between actual and budgeted amounts. Compute a variance for each line item and indicate whether each variance is favorable or unfavorable