Mikes remodeling services projects variable costs of $80 per hour and budgeted $6,000 per month for fixed costs. For the year they had budgeted volume of 12,000 hours at an average selling value of $100 per hour. Their actual volume was 13,000 hours and the actual profit was $200,000.

a) What was their budgeted profit?

b) How much of the variance versus budget was Activity related?

c) How much of the variance was Spending/revenue related?