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 $760. Budgeted cost data per tenant application for 2019 follow:

Professional labor: 2.0 hours at $15.00 per hour

• Credit checks: $53.00

Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $3,600 per month. On average, Phoenix is successful in placing one tenant for every three applicants.

Actual rental applications in August 2019 were 270. Phoenix paid $9,300 for 480 hours of professional labor. Credit checks went up to $58 per application. Other costs in August 2019 (lease, secretarial help, and utilities) were $3,900. The average first monthly rentals for August 2019 were $860 per apartment unit for 90 units.

Required: 1. (aj What is the total operating income variance for August 2019? (b) What is the total flexible is the sales volume variance for the month? 2 Determine the professional labor rate and labor efficiency variances for August 2019 $ 340 Favorable 1a. The total operating income variance 1b. The total flexible-budget variance 1c. The sales volume variance 2. Direct labor rate variance 1650 Favorable 1310 Unfavorable S2 100 (Unfavorable S900 Favorable Direct labor efficiency variance