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Jade Bell has run Comfort Maids , a specialty cleaning service for medical and dental offices, for the past 1 0 years. Her static budget
Jade Bell has run Comfort Maids a specialty cleaning service for medical and dental offices, for the past years. Her static budget and actual results for April are shown below. Comfort Maids Actual and Budgeted Income Statements For the Month Ended April Budget Actual Offices cleaned Revenue $ $ Variable costs: Costs of supplies Labor Total variable costs Contribution margin Fixed costs Operating income $ $ popup content ends. has one employee who has been with her for all years that she has been in business. In addition, at any given time she also employs two other lessexperienced workers. It usually takes each employee hours to clean an office, regardless of his or her experience. Bell pays her experienced employee $ per office and the other two employees $ per office. There were no wage increases in April How many offices, on average, did Bell budget for each employee? How many offices did each employee actually clean? Prepare a flexible budget for April Compute the sales price variance and the labor efficiency variance for each labor type. What information, in addition to that provided in the income statements, would you want Bell to gather, if you wanted to improve operational efficiency?
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