The following information has been prepared for a home health agency.

	Budget	Actual
Wage Rate per Hour	$16.00	$17.00
Fixed Hours	320	320
Variable Hours per Relative Value Unit RVU	1	1.1
Relative Value Units (RVUs)	1,000	1,200
Labor Costs	$21,120	$27,880
Cost per RVU	$21.12	$23.23

Budgeted costs at actual volume would be $25,344 ($21.12 1,200), and the total variance to be explained is $2,536 Unfavorable ($27,880 $25,344). Be sure to specify whether the variance is favorable or unfavorable.

What is the amount of variance that is attributed to the difference between the budgeted and actual wage rate per hour?

What is the amount of variance that is attributed to the change in labor productivity?

What is the amount of variance that can be attributed to the difference between budgeted and actual volume?