Prudies estimate for June was slightly off. Her company actually cleaned 34 parking lots in June. For these 34 parking lots, her employees used a total of 323 gallons of detergent. This detergent actually cost the firm $24,871 in total. Also assume that these 34 parking lots actually required 362 DL hours at a cost of $3,258. Actual VOH costs in June amounted to $2,172.

Calculate the June total flexible budget DM variance for the detergent. Represent this variance as a positive number.

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Question 81 pts

Classify the above flexible budget DM variance.

Group of answer choices

Favorable

Unfavorable

Neither favorable or unfavorable

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Question 91 pts

Calculate the June flexible budget DM price variance for the detergent. Represent this variance as a positive number.

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Question 101 pts

Classify the above DM price variance.

Group of answer choices

Favorable

Unfavorable

Neither favorable or unfavorable

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Question 111 pts

Calculate the June flexible budget DM efficiency variance for the detergent. Represent this variance as a positive number.

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Question 121 pts

Classify the above DM usage/efficiency variance.

Group of answer choices

Favorable

Unfavorable

Neither favorable or unfavorable

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Question 131 pts

Calculate the June flexible budget DL efficiency variance. Represent this variance as a positive number.

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Question 141 pts

Classify the above DL usage/efficiency variance

Group of answer choices

Favorable

Unfavorable

Neither favorable or unfavorable

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Question 151 pts

Prudie wants to maintain target month-end inventories of 25% of the following months expected detergent (DM) usage (to make sure her employees never run out of detergent on a job).

Calculate the cost of the detergent solution purchases the firm should expect to make in April.

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Question 161 pts

Much of the VOH at Prudies Pressure Washing comes from maintenance on the pressure washing machines (replacing worn out seals, hoses, and parts, as well as regularly cleaning and oiling the machines). A local mechanic has approached Prudie and offered to take over this maintenance in exchange for a fixed monthly fee. His quoted fee is very close to the average monthly costs of VOH maintenance for Prudies Pressure Washing. Prudie thinks that it may be a good idea to pursue this deal, as it would mean less uncertainty about costs. She asks if you see any downsides to this potential arrangement. Use two sentences or less to explain the primary potential downside of this new cost structure.