Phoenix Management helps rental property owners find renters and charges the owners one-half of the first months rent for this service. For August 2019, Phoenix expects to find renters for 100 apartments with an average first months rent of $800. Budgeted cost data per tenant application for 2019 follow:

• Professional labor: 2.0 hours at $15.00 per hour
• Credit checks: $55.00

Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $3,500 per month. On average, Phoenix is successful in placing one tenant for every three applicants. Actual rental applications in August 2019 were 240. Phoenix paid $8,000 for 420 hours of professional labor. Credit checks went up to $58 per application. Other costs in August 2019 (lease, secretarial help, and utilities) were $4,100. The average first monthly rentals for August 2019 were $940 per apartment unit for 80 units.

1. (a) What is the total operating income variance for August 2019?

(b) What is the total flexible-budget variance for the month?

(c) What is the sales volume variance for the month?

1a.	The total operating income variance	$1,820 selected answer incorrect	Favorable selected answer correct
1b.	The total flexible-budget variance	$9,080 selected answer incorrect	Favorable selected answer correct
1c.	The sales volume variance	$10,900 selected answer incorrect	Unfavorable selected answer correct