Question Help * P7-35 (similar to) Janice Babich has run Handy Maids, a specially deaning service for medical and dental offices, for the past 10 years. Her static budget and actual results for April 2020 are shown below. Click the icon to view the actual and budgeted Income statements) (Click the icon to view the employee information) Read the requirements Requirement 1. How many offices, on average, did Babich budget for each employee? How many offices did each employee actually clean? Determine the formula to show how many offices, on average, the employees cleaned. (X=number of offices cleaned by experienced employee. Y = number of offices cleaned by both less experienced employees) (Click the icon for information regarding the formula selections) + F ) = Next, calculate the budgeted and actual number of offices for each employee type Budgeted Actual E B number of offices number of offices Experienced employee Less experienced employees averag yee any offic expe ed emp Handy Maids Actual and Budgeted Income Statements For the Month Ended April 30, 2020 Budget Actual 230 250 Offices cleaned $ Revenue 39.100 $ 50.000 arding the al numb Variable costs Costs of supplies Budge mber of 1.610 6 210 1,810 6.900 Labor Total variable costs 7.820 8.710 Contribution margin 31.280 9,300 Fixed costs 41,290 9,300 Operating income $ 21.980 $ 31.990 es, a owi Requirements erier n red 1. ) + act 2. 3. How many offices, on average, did Babich budget for each employee? How many offices did each employee actually clean? Prepare a flexible budget for April 2020. Compute the sales price variance and the labor efficiency variance for each labor type What information, in addition to that provided in the income statements, would you want Babich to gather, if you wanted to improve operational efficiency? 4. nu - X i Formula labels A Contribution margin B Labor costs C Operating income D Revenue E Wage paid to experienced employee per office F Wage paid to less experienced employees per office erage, did Babich budget for each employee? How many offices did each employee actu. i More Info Janice has one employee who has been with her for all 10 years that she has been in business. In addition, at any given time she also employs two other less-experienced workers. It usually takes each employee 2 hours to clean an office, regardless of his or her experience. Babich pays her experienced employee $30 per office and the other two employees $15 per office. There were no wage increases in April
