Question 2: Larry's Lawn Service provides lawn care in a planned community where all lawns are approximately the same size. At the end of May, Larry prepared his June budget based on mowing 500 lawns. Since all of the lawns are similar in size, Larry felt that the number of lawns mowed in a month would be the best way to measure overall activity for his business. Following are the details given of his actual results and planning budget for the month ending on June 30th.. Larry's Lawn Service For the Month Ended June 30 Revenue/Cost Actual Planning Formulas Results Budget 550 500 ($750) $ 43,000 $ 37,500 Number of lawns (Q) Revenue Expenses: Wages and salaries Gasoline and supplies Equipment maintenance Office and shop utilities Office and shop rent Equipment Depreciation Insurance Total expenses Net operating income ($5,000 + $300) ($9Q) ($3Q) ($1,000) ($2,000) ($2,500) ($1,000) 950 $ 23,500 $ 20,000 5,100 4,500 1,300 1,500 1,000 2,000 2,000 2,500 2,500 1,200 1,000 36,550 32,500 $ 6,450 $ 5,000 Requirements: 1. Calculate the spending and revenue variances 2. Identify the favorable and unfavorable spending and revenue variances