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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 $920. Budgeted cost data per tenant application for 2022

follow:

Professional labor: 1.5 hours at $20.00 per hour

Credit checks: $61.00

Phoenix expects other costs, including the lease payment for

the building, secretarial help, and utilities, to be $4,100 per

month. On average, Phoenix is successful in placing one

tenant for every three applicants.

Actual rental applications in August 2022 were 270. Phoenix

paid $8,700 for 390 hours of professional labor. Credit checks

went up to $66 per application. Other costs in August 2022

(lease, secretarial help, and utilities) were $4,700. The

average first monthly rentals for August 2022 were $1,020

per apartment unit for 90 units.

Required:

1. (a) What is the master budget variance for August 2022? (b) What is the total flexible budget variance for the month? (c) What is the sales volume variance for the month?

2. Determine the professional labor rate and labor efficiency variances for August 2022.

The master budget variance

1b.

The total flexible budget variance

1C.

The sales volume variance

2.

Direct labor rate variance

Direct labor efficiency variance