Emplex is a payroll service. The firm takes over all record keeping, cheque writing, and remittances to the government of payroll taxes and withholding amounts. The firm also provides premium services which consist of analysis of efficiency, bonuses, sick days, market rates of pay etc. These services are intended to help client firms make sure their employees are working efficiently and effectively. Clients pay an initial fee that covers the costs of setting up the account. After that, each client pays a monthly fee that is based on number of employees. Premium services are billed out at a negotiated rate which varies depending on the service desired, the complexity of the analysis, research requirements and any other unique aspects of the project. Emplex employs a team of salespeople who are charged with finding new customers and liaising with existing customers. The salespeople receive a commission for each new customer they bring on board. Each month, data from all covered employees is processed electronically, but a few data entry people are employed who make sure the data is clean and properly formatted before it is processed. This team makes sure that the nuts and bolts of the monthly service works properly. There is also a large team of analysts, who are responsible for conducting and reporting on the premium services. The static budget for the month of November follows:

Variance Clients (11/1) Clients (11/30) Employees Covered New Clients Premium Services Budget 3,393 3,450 5,175,000 204 1,380 Actual 3,393 3,200 5,286,000 198 1,487 250 111,000 6 107 Onboarding Fees Monthly Charges Premium Charges $571,200 11,643,750 6,210,000 $619,542 11,259,180 7,777,010 $48,342 384,570 1,567,010 Variable Costs Commissions Data Care Customer Care 102,000 1,552,500 1,035,000 99,000 1,691.520 1,088,000 3,000 139,020 53,000 Fixed Costs Depreciaton Salaries 4,300,000 5,400,000 4,300,000 5,492,000 92,000 Prepare a flexible budget for Emplex for the month of November. Be sure to include activity variances. Label each variance appropriately and indicate for each the degree of significance. Document your computations and label them. Variance Clients (11/1) Clients (11/30) Employees Covered New Clients Premium Services Budget 3,393 3,450 5,175,000 204 1,380 Actual 3,393 3,200 5,286,000 198 1,487 250 111,000 6 107 Onboarding Fees Monthly Charges Premium Charges $571,200 11,643,750 6,210,000 $619,542 11,259,180 7,777,010 $48,342 384,570 1,567,010 Variable Costs Commissions Data Care Customer Care 102,000 1,552,500 1,035,000 99,000 1,691.520 1,088,000 3,000 139,020 53,000 Fixed Costs Depreciaton Salaries 4,300,000 5,400,000 4,300,000 5,492,000 92,000 Prepare a flexible budget for Emplex for the month of November. Be sure to include activity variances. Label each variance appropriately and indicate for each the degree of significance. Document your computations and label them