Prepare a master budget and analyze variances for a service department.

Budgeted Costs	Actual Costs
Salaries	$200,000
Supplies	$50,000
Utilities	$30,000
Administrative Costs	$80,000
Revenue	$400,000

Requirements:

Prepare a master budget including revenue and various cost components.

Calculate the budget variance and analyze it for each cost item.

Discuss the implications of budget variances and recommend corrective actions.