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 12009 April 2009 Actual Annual Budget 2009 EarningS Cost of Construction 8,500,000 100.00 650,000 100.00 Labor Material Subcontracts Other Direct Cost 16.00 104,000 37.00 247,000 2,550,000 30.00 208,000 13,000 16.00 38.00 32.00 3,145,0003 170,000 Total Direct Cost Gross Profit Operating Expense Variable 7,225,00085.00 572,00088.00 12.00 1,275,000 15.00 78,000 Vehicle Expense Indirect Labor Insurance (W-I-P Interest (W-I-P) Other Variable Expense 7,800 3,900 9,750 15,405 1,300 38,155 127,500 51000 85,000 1.20 201,450 2.37 0.20 5.67 17,000 0.20 Total Variable Expense Fixed 481,950 Contributions Depreciation (A&T Depreciation (Building) Insurance (A&T) Interest (A&T Rent Salaries Other Fixed Expense 6,000 72,000 3,000 34,000 20,000 46,000 345,000 12,000 538,000 0.07 500 0.85 6,000 0.92 3,000 1,667 3,600 25,000 1,000 41,017 79,172 1,172 328 -844 0.55 3.85 6.31 Total Fixed Expense Total Operating Expense 1,019,950 12.00 Net Profit (bt Tax (28%) Net Profit (at) 6.33 12.18 255,050 71,414 183,636 Table 2. Past history for Year's Earnings Year 2005 2006 2007 2008 $280,000 $630,000 $1,120,000 $800,000 $4.000,000 $7,000,000 S14,000,000 S10,000,000 Table 1. Annual Budget for 2009 & Actual Income Statement for 12009 April 2009 Actual Annual Budget 2009 EarningS Cost of Construction 8,500,000 100.00 650,000 100.00 Labor Material Subcontracts Other Direct Cost 16.00 104,000 37.00 247,000 2,550,000 30.00 208,000 13,000 16.00 38.00 32.00 3,145,0003 170,000 Total Direct Cost Gross Profit Operating Expense Variable 7,225,00085.00 572,00088.00 12.00 1,275,000 15.00 78,000 Vehicle Expense Indirect Labor Insurance (W-I-P Interest (W-I-P) Other Variable Expense 7,800 3,900 9,750 15,405 1,300 38,155 127,500 51000 85,000 1.20 201,450 2.37 0.20 5.67 17,000 0.20 Total Variable Expense Fixed 481,950 Contributions Depreciation (A&T Depreciation (Building) Insurance (A&T) Interest (A&T Rent Salaries Other Fixed Expense 6,000 72,000 3,000 34,000 20,000 46,000 345,000 12,000 538,000 0.07 500 0.85 6,000 0.92 3,000 1,667 3,600 25,000 1,000 41,017 79,172 1,172 328 -844 0.55 3.85 6.31 Total Fixed Expense Total Operating Expense 1,019,950 12.00 Net Profit (bt Tax (28%) Net Profit (at) 6.33 12.18 255,050 71,414 183,636 Table 2. Past history for Year's Earnings Year 2005 2006 2007 2008 $280,000 $630,000 $1,120,000 $800,000 $4.000,000 $7,000,000 S14,000,000 S10,000,000