The Rescuers, Ltd. operates a fleet of trucks which locate and/or respond to calls from disabled cars or accidents.Repairs are done at the location of the problem (80% of which are on the QEW).If damage is too severe, or the problem is such that it cannot be taken care of immediately, the drivers tow the car to a location chosen by the vehicle owner.

The drivers of the trucks are considered independent contractors and are paid a set amount for each service incident that is completed on site (and nothing if they tow the vehicle, although they often receive tips from the vehicle owners and some repair shops offer "kickbacks" to tow trucks that bring in business).The firm owns the trucks, and pays for all repairs and maintenance, including gas. Customers are charged a flat fee if towing is necessary, and various fees if repairs are conducted on site. The firm budgets carefully for each month. Gas and repairs are budgeted on the basis of kilometers driven. The static budget variances for September, 2020 were as follows:

Budget Actual Variance

Service Calls22,50023,6301,130F

Completed on site20,25019,0201,230U

Towed2,2504,6102,360U

Kilometers driven472,500638,000165,500U

Revenue (from repairs)$13,162,500$11,386,200$1,776,300U

Revenue (from towing)450,000922,000472,000F

Variable costs:

Gas56,70069,20012,500U

Parts911,250890,60020,650F

Payments to drivers2,632,5002,472,600159,900F

Fixed costs

Salaries82,00080,0002,000U

Depreciation on trucks950,000950,000---

See the problem / numbers above for flexible budgeting. What might have caused these important variances. What is one clear recommendation to make to management? **The recommendation can always be that no changes be implemented.**