Jana Bailey has run Therapeutic Maids, a specialty cleaning service for medical and dental offices, for the past 10 years. Her static budget and actual results for April 2017 are shown below. Therapeutic Maids Actual and Budgeted Income Statements For the Month Ended April 30, 2017 Budget Actual 230 250 Offices cleaned Revenue $ 41,400 $ 52,500 Variable costs: Costs of supplies 1,610 2,360 Labor 6,210 6,900 Total variable costs 7,820 9,260 Contribution margin 33,580 43,240 Fixed costs 9,900 9,900 $ Operating income 23,680 $ 33,340 Jana has one employee who has been with her for all 10 years that she has been in business. In addition, at any given time she also employs two other less-experienced workers. It usually takes each employee 2 hours to clean an office, regardless of his or her experience. Bailey pays her experienced employee $30 per office and the other two employees $15 per office. There were no wage increases in April. 1. 2. 3. How many offices, on average, did Bailey budget for each employee? How many cars did each employee actually detail? Prepare a flexible budget for April 2017 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 Bailey to gather, if you wanted to improve operational efficiency? 4