Using the table provided, calculate the variances.

Labor

Revenues Revenue (hrs.) = [Actual Labor (hrs.) - Budget Labor (hrs.)] x Budget Labor Rate ($/hr.)

Rate ($/hr.) = [Actual Labor Rate ($/hr.) - Budget Labor Rate ($/hr.)] x Budget Labor (hrs.)

Costs Costs (hrs.) = [Budget Labor Costs (hrs.) - Actual Labor Costs (hrs.)] x Actual Labor Costs ($/hr.)

Labor ($/hr.) = [Budget Labor Costs ($/hr.) - Actual Labor Costs ($/hr.)] x Budget Labor Costs (hrs.)

Parts

Revenues Revenue (hrs.) = [Actual Labor (hrs.) - Budget Labor (hrs.)] x Budget Parts ($/hr.)

Revenue ($/hr.) = [Actual Parts ($/hr.) - Budget Parts ($/hr.)] x Actual Labor (hrs.)

Costs

Costs (hrs.) = [Actual Revenue Labor (hrs.) - Budget Revenue Labor (hrs.)] x Budget Revenue Parts ($/hr.) x Budget Parts Mark-up

Costs ($/hr.) = [Actual Revenue Parts ($/hr.) - Budget Revenue Parts ($/hr.)] x Budget Revenue Labor (hrs.) x Budget Parts Mark-up

Mark-up = [Actual Parts Mark-up - Budget Parts Mark-up] x Budget Revenue Labor (hrs.) x Budget Revenue Parts ($/hr.)

Other = this is a balancing variance that allows for the sum of the variances tied to the calculated parts variance

MRO Department - 2020 Results Revenues (billed out): Budget Actual Fav./! nfav.[ - Labor (hrs) 3,456 3,685 229 - Labor rate ($/hr.) 120 120 - - Darts ($/hr.) 345 320 (25) Costs: - Labor (hrs) 3,840 3,877 37 - Labor ($/hr.) 42 43 1 - Darts (% of revenue) 80% 75% -5% Revenues: $ Fav./! nfav.[ - Labor 414,720 442,191 27,471 - Darts 1,192,320 1,178,092 (14,228) Total Revenues 1,607,040 1,620,283 13,243 Costs: - Jabor 161,280 166,211 4,931 - Darts 953,856 882,143 (71,713) Total Costs 1,115,136 1,048,354 (66,782) Gross Margin 491,904 571,929 80,025 Overhead: - Space 75,000 75,000 - - General & Admin. 35,000 35,000 - - Depreciation 68,500 68,500 - - Legal & Regu1atory 18,000 18,000 - Total Overhead 196,500 196,500 - Net before Taxes 295,404 375,429 80,025 : Taxes 62,035 78,840 16,805 Net after Taxes 233,369 296,589 63,220 Labor Variance Change in Gross Margin I 80,025 \\ Parts Variance Revenue (hrs) Rate ($/hr.) Costs (hrs) Labor (SS/hr.) Total Revenue (hrs) Revenue (ES/hr.) Costs (hrs) Costs (ES/hr.) Mark-up Other Total