Solo is a repair shop that runs a business to fixing cars. The static budget and actual results for Jun 2019 are provided in the below table. There are two full-time employees for in the repair shop. In addition at any given time, the manager also employs two other less-experienced workers. It usually takes each employee 2 hours to fix a vehicle regardless of his experience. The manager of Solo pays the experienced employees $45 per vehicle and $25 for the other employees. Budget Actual Car modification 410 360 

Revenue $63,580 $72,000 Variable costs: 

1- Cost of supplies 1,386 1,260 

2- Labor 7,920 6,830 

Total variable cost 8,778 7,980 

Contribution margin 49,742 47,020 

Fixed cost 10,780 9,800 

Operating income 38,962 37,220 

1- How many cars on average did Solo budget for each employee? How many cars did each employee actually fixed? 

2- Prepare a flexible budget for Jun 2019? 

3- Compute sales price variance and the labor efficiency variance for each labor type?