Explain the variances in the sheet below.

Revenues (billed out): - Labor (hrs.) - Labor rate (S/hr.) - Parts (S/hr.) Costs: - Labor (hrs.) - Labor (S/hr.) - Parts (% of revenue) Revenues: - Labor - Parts Costs: - Labor - Parts Gross Margin Overhead: - Space - General & Admin. - Depreciation - Legal & Regulatory Budget 3,456 120 345 414,720 437,760 1,192,320 1,168,092 Total Revenues 1,607,040 1,605,852 Total Overhead 3,840 42 80% 161,280 168,650 953,856 899,431 Total Costs 1,115,136 1,068,080 Net before Taxes Taxes Net after Taxes Actual 3,648 120 320 3,877 44 77% 75,000 35,000 68,500 18,000 196,500 491,904 537,772 75,000 35,000 68,500 18,000 196,500 295,404 341,272 62,035 71,667 233,369 269,605 MRO Department - 2020 Results Fav./(Unfav.) 192 - (25) 37 2 -3% $ Fav./(Unfav.) 23,040 (24,228) (1,188) 7,370 (54,425) (47,056) 45,868 45,868 9,632 36,235 Labor Variance Revenue (hrs.) Rate (S/hr.) Costs (hrs.) Labor (S/hr.) Total Change in Gross Margin 45,868 23,040 (1,610) (5,760) 15,671 Parts Variance Revenue (hrs.) Revenue (S/hr.) Costs (hrs.) Costs (S/hr.) Mark-up Other Total 66,240 (90,468) 52,992 fav (68,565) unf (35,770) unfav (3,082) unfav tie out 30,197 Insert your text explanation of the variances here.