SCENARIO 1 Kemper Corporations operates offices and facilities across the state. To assist employees who must visit different locations Kemper has 20 vehicles available staff to use as part of the Vehicle Department. This department is responsible for all expenses, maintenance, and repairs of the vehicles. There is an administrative coordinator who manages the department including vehicles booking, replacement and maintenance schedules as well as the budget. One mechanic is on staff to do the regular maintenance and minor reports. If major repairs are needed, they are performed by a local automotive repair shop. During the month one additional vehicle was purchased. The administrative coordinator is not happy with the cost control report because it shows a deficit. The following cost control report for April of the current year compared to the planning budget for April. Kemper Corporation Vehicle Department Cost Control Report For April 30, 2022 Kilometers Vehicles Planning Budget 50,000 20 Actual 63,000 21 Variance Salaries and benefits $7,540 $7.540 $0 Petrol 7,500 9,350 (1850) Parts and fluids 2,000 2,360 6:300) External repairs 1,500 1,420 80 Insurance 2,000 2,120 (120) Vehicle depreciation 5,000 5,250 12509 Total $25 540 $28.040 152-4KS The planning budget was based on the following assumptions. a. Salaries and benefits $7,540 per month for salaries and benefits b. Petrol $0.15 per kilometer c. Parts and fluids $0.04 per kilometer d. External repaus $75 per vehicle per month Insurance $100 gelaele per month