LDOGHJCDU'TJSLUNAL 1> it of contracts Salaries ($60k per person] Fringe benefits Temporary Help Office Supplies Office Equipment depreciation Employee training Fees and Licenses Total Department C D E F G Monthy Department Expense Report {Legal Services] Budget FlexBudg Actual Variance Unf 50 95 95 $0005 $0005 $0005 (Fav) 180 285 240 -45 F 54' 86 72 714 30 48 45 .3 F 5 8 8 0 10 10 I 0 6 1| 8 -2 F 5 6 4 *2 F 290 451 387 764 This legal department of a financial services company prepared a (static) budget (shown above) at the end of the month the corporate controller provided the department performance to budget report shown above. The controller is concerned that the department did not meet its budget and was very unfavorable in spending. You have been asked to explain the department's performance. The legal department primarily does contract creation and processingfor clients. Most contracts are very similar in length and complexity. The department had planned on 60 contracts per month. In the most recent month they processed 95 contracts. F The legal department managed costs well for the amount of work completed. This column is the expected spending that should be allowed for the number of contracts. The original budget comparison were based on an expectation of less work (few contracts)