Prudie needs help with budgeting. She provides you with the following data about her costs, revenues, and expected units (# of parking lots cleaned).

Assume that Prudies Pressure Washing budgets 10 DL hours per parking lot and predicts DL wages to be $11 per hour. Also assume that variable overhead is allocated at a budgeted rate of $6 per DL hour, and that FOH is expected to be $9,500 per month. Budgeted revenue per parking lot cleaned is $1,600.

The only direct material at Prudies Pressure Washing is a detergent solution used to clean oil off parking lots. Prudie tells you that her employees budget to use 12 gallons of detergent per parking lot and that the budgeted cost of the detergent is $80 per gallon. Prudie provides you with expected parking lots to be cleaned for the following 4 months.

Month	Expected Parking Lots (# units)
March	32
April	40
May	21
June	29

Calculate budgeted monthly break-even sales revenue for Prudies Pressure Washing.

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Question 31 pts

Calculate the margin of safety in sales dollars for May.

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Question 41 pts

If actual fixed OH in May turns out to be $8,700, calculate the FOH spending variance for the month. Assume that in May Prudies Pressure Washing actually cleaned 24 parking lots and generated revenues of $39,240. Represent this variance as a positive number.

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Question 51 pts

Classify the above FOH spending variance.

Group of answer choices

Favorable

Unfavorable

Neither favorable or unfavorable

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Question 61 pts

After paying variable costs, how much is leftover from each dollar of sales revenue to contribute back to fixed costs and profits at Prudies Pressure Washing (use budgeted data to calculate this)?