Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Phoenix Management helps rental property owners find renters and charges the owners one-half of the first months rent for this service. For August 2022, Phoenix

Phoenix Management helps rental property owners find renters and charges the owners one-half of the first months rent for this service. For August 2022, Phoenix expects to find renters for 100 apartments with an average first months rent of $1,070. Budgeted cost data per tenant application for 2022 follow:

  • Professional labor: 1.5 hours at $18.00 per hour
  • Credit checks: $70.00

Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $5,000 per month. On average, Phoenix is successful in placing one tenant for every three applicants.

Actual rental applications in August 2022 were 270. Phoenix paid $8,100 for 390 hours of professional labor. Credit checks went up to $75 per application. Other costs in August 2022 (lease, secretarial help, and utilities) were $5,600. The average first monthly rentals for August 2022 were $1,200 per apartment unit for 90 units.

Required:

1. (a) What is the master budget variance for August 2022? (b) What is the total flexible budget variance for the month? (c) What is the sales volume variance for the month?

2. Determine the professional labor rate and labor efficiency variances for August 2022.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Glomont Auditing And Attestation AICPA Released Questions CPA Exam Review 2022

Authors: Glomont, American Institute Of Certified Public Accountants, AICPA

1st Edition

B0BF31GQMC, 979-8353524045

More Books

Students also viewed these Accounting questions

Question

1. Identify three approaches to culture.

Answered: 1 week ago

Question

2. Define communication.

Answered: 1 week ago