question 11

Problem 14-50 (Algo) Flexlble Budgets and Operating Income Varlances [LO 14-2, 14-3, 14-6] [The following information applies to the questions displayed below] Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month's rent for this service. For August 2022, Phoenix expects to find renters for 100 apartments with an average first month's rent of $820. Budgeted cost data per tenant application for 2022 follow: - Professional iabor: 1.5 hours at $20,00 per hour - Credit checks $56.00 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 2022 were 240. Phoenix paid $9.000 for 350 hours of professional labor. Credit. checks went up to $60 per application. Other costs in August 2022 (lease, secretarial help, and utilities) were $3.700. The average first monthly rentals for August 2022 were $980 per apartment unit for 80 units