Johnson has run Medical Maids, a specialty cleaning service for medical and dental offices, for the past 10 years. Its static budget and actual results for April 2017 are shown below. Tony has been serving the company since Johnson started his business. Additionally, at any given time he also employs two other less-experienced workers. It usually takes each employee 2 hours to clean an office, regardless of his or her experience. Johnson pays the experienced employee $30 per office and the other two employees $15 per office. There were no wage increases in April. Medical Maids Actual and Budgeted Income Statements For the Month Ended April 30, 2017 Offices cleaned Revenue Budget Actual 140 160 $26,600 $36,000 Variable costs: Costs of supplies 630 680 Labor 3,360 4,200 Total variable costs 3,990 4,880 Contribution margin 22,610 31,120 Fixed costs 4,900 4,900 Operating income $17,710 $26,220 Required: 1. How many offices, on average, did Johnson budget for each employee? How many offices did each employee actually clean? (4 marks) 2. Prepare a flexible budget for April 2017. (6 marks) 3. Compute the sales price variance and the labor efficiency variance for each labor type. (6 marks) 4. What information, in addition to that provided in the income statements, would you want Johnson to gather, if you wanted to improve operational efficiency? (4 marks)