Peter McQueen has run Best Value Car Detailing for the past 10 years. His static budget and actual results for June 2014 are provided below. Peter has one employe employee 2 hours to detail a vehicle, regardless of his or her experience. Peter pays his experienced employee $30 per vehicle and the other two employees $15 per E: (Click the icon to view the actual and budgeted income statements.) Read the requirements Requirement 1. How many cars, on average, did Peter budget for each employee? How many cars did each employee actually detail? Determine the formula to show how many cars, on average, the employees detailed. (X = number of cars detailed by experienced employee, Y = number of cars deta (Click the icon for information regarding the formula selections.) (LEX X )+(LFX Y = LB Next, calculate the budgeted and actual number of cars for each employee type. Budgeted Actual number of cars number of cars Data Table - X Experienced employee Less experienced employees Requirement 2. Prepare a flexible budget for June 2014. (Round your answers to th Best Value Car Detailing Income Statement Variances For the month ended June 30, 2014 Best Value Car Detailing Actual and Budgeted Income Statements For the Month Ended June 30, 2014 Budget Actual Cars detailed 230 250 Revenue $ 34,500 $ 47,500 Flexible budget Budget Actual 230 250 $ 34,500 $ 47,500 Variable costs Costs of supplies Cars detailed 2,410 6,900 Labor 1,610 6,210 7,820 Revenue Variable costs Costs of supplies 9,310 1,610 6,210 7,820 Labor Total variable costs Contribution margin Fixed costs 2,410 6,900 9,310 26,680 9,700 16,980 $ 38,190 9,700 28,490 $ Total variable costs Contribution margin Operating income Fixed costs 26,680 9,700 16,980 $ 38,190 9,700 28,490 Print Done $ Operating income Requirement 3. Compute the sales price variance and the labor efficiency variance for each labor type. Begin with the sales price variance. Determine the formula then compute the sales price variance. Label the variance as favorable (F) or unfavorable (U). Requirement 3. Compute the sales price variance and the labor efficiency variance for each labor type. Begin with the sales price variance. Determine the formula then compute the sales price variance. Label the variance as favorable (F) or unfavorable (U). ( Actual sales price - Budgeted sales price) x Actual # of cars Sales price variance JDF Next, determine the formula you will use to compute the labor efficiency variances. (Actual # of cars detailed - Budgeted quantity of input allowed for actual output) x Budgeted wage rate per car Now compute the labor efficiency variance for each type of labor. Label the variance as favorable (F) or unfavorable (U). Labor efficiency variance Experienced worker Less experienced workers Requirement 4. What information, in addition to that provided in the income statements, would you want Peter to gather, if you wanted to improve operational efficiency? In addition to understanding the variances computed above, Peter should attempt to keep track of the number of cars worked on by each employee, as well as the total number of hours spent on the cars