Is the variable operating expense of Indirect Labor on budget, by comparing actual indirect labor expense to the budgeted indirect labor expense?

a.) Yes

b.) No

Table 1. Annual Budget for 2009 & Actual Income Statement for April 2009 Annual Budget 2009 April 2009 Budget Actual Earnings Cost of Construction Labor Material Subcontracts Other Direct Cost Total Direct Cost Gross Profit Operating Expense Variable Vehicle Expense Indirect Labor Insurance (W-I-P) Interest (W-I-P) Other Variable Expense Total Variable Expense Fixed Contributions Depreciation (A&T) Depreciation (Building) Insurance (A&T) Interest (A&T) Rent Salaries Other Fixed Expense Total Fixed Expense Total Operating Expense Net Profit (bt) Tax (28%) Net Profit (at) $ % 8,500,000 100.00 1,360,000 16.00 3,145,000 37.00 2,550,000 170,000 2.00 13,000 2.00 7,225,000 85.00 572,000 88.00 1,275,000 15.00 78,000 12.00 127,500 1.50 51,000 0.60 85,000 201,450 $1,120,000 $800,000 1.00 2.37 17,000 0.20 481,950 5.67 6,000 0.07 72,000 0.85 3,000 0.04 34,000 0.40 20,000 0.24 46,000 0.54 345,000 4.06 12,000 0.14 538,000 6.33 1,019,950 255,050 71,414 183,636 Table 2. Past history for April earnings Year April's Earnings 2005 $280,000 2006 $630,000 2007 2008 30.00 208,000 12.00 3.00 0.84 2.16 $ 650,000 Year's Earnings $4,000,000 $7,000,000 $14,000,000 $10,000,000 104,000 16.00 247,000 38.00 32.00 7,800 3,900 9,750 15,405 1,300 38,155 500 6,000 250 % 100.00 3,000 1,667 3,600 25,000 1,000 41,017 79,172 -1,172 -328 -844 1.20 0.60 1.50 2.37 0.20 5.87 0.08 0.92 0.04 0.46 0.26 0.55 3.85 0.15 6.31 12.18 -0.18 -0.05 -0.13