Required Information [The following information applies to the questions displayed below.] Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month's rent for this service. For August 2022, Phoenix expects to find renters for 100 apartments with an average first month's rent of $800. Budgeted cost data per tenant application for 2022 follow: • Professional labor: 2.0 hours at $15.00 per hour • Credit checks: $55.00 Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $3,500 per month. On average, Phoenix is successful in placing one tenant for every three applicants. Actual rental applications in August 2022 were 240. Phoenix paid $8,000 for 420 hours of professional labor. Credit checks went up to $58 per application. Other costs In August 2022 (lease, secretarial help, and utilities) were $4,100. The average first monthly rentals for August 2022 were $940 per apartment unit for 80 units. Required: 1. (a) What is the master budget varlance for August 2022? (b) What is the total flexible budget variance for the month? (c) What is the sales volume variance for the month? 2. Determine the professional labor rate and labor efficiency variances for August 2022. The master budget variance The total flexible budget variance The sales volume variance Direct labor rate variance Direct labor efficiency variance
Required Information [The following information applies to the questions displayed below.] Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month's rent for this service. For August 2022, Phoenix expects to find renters for 100 apartments with an average first month's rent of $800. Budgeted cost data per tenant application for 2022 follow: • Professional labor: 2.0 hours at $15.00 per hour • Credit checks: $55.00 Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $3,500 per month. On average, Phoenix is successful in placing one tenant for every three applicants. Actual rental applications in August 2022 were 240. Phoenix paid $8,000 for 420 hours of professional labor. Credit checks went up to $58 per application. Other costs In August 2022 (lease, secretarial help, and utilities) were $4,100. The average first monthly rentals for August 2022 were $940 per apartment unit for 80 units. Required: 1. (a) What is the master budget varlance for August 2022? (b) What is the total flexible budget variance for the month? (c) What is the sales volume variance for the month? 2. Determine the professional labor rate and labor efficiency variances for August 2022. The master budget variance The total flexible budget variance The sales volume variance Direct labor rate variance Direct labor efficiency variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
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![Required Information
[The following information applies to the questions displayed below.]
Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month's rent
for this service. For August 2022, Phoenix expects to find renters for 100 apartments with an average first month's rent of
$800. Budgeted cost data per tenant application for 2022 follow:
• Professional labor: 2.0 hours at $15.00 per hour
• Credit checks: $55.00
Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $3,500 per
month. On average, Phoenix is successful in placing one tenant for every three applicants.
Actual rental applications in August 2022 were 240. Phoenix paid $8,000 for 420 hours of professional labor. Credit
checks went up to $58 per application. Other costs In August 2022 (lease, secretarial help, and utilities) were $4,100. The
average first monthly rentals for August 2022 were $940 per apartment unit for 80 units.
Required:
1. (a) What is the master budget varlance for August 2022? (b) What is the total flexible budget variance for the month? (c) What is the
sales volume variance for the month?
2. Determine the professional labor rate and labor efficiency variances for August 2022.
The master budget variance
The total flexible budget variance
The sales volume variance
Direct labor rate variance
Direct labor efficiency variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F567e3a3e-d0fb-49e0-903a-334d72aa92be%2Fda098ed1-9142-4fc5-b101-ec7707418938%2F4858obg_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.]
Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month's rent
for this service. For August 2022, Phoenix expects to find renters for 100 apartments with an average first month's rent of
$800. Budgeted cost data per tenant application for 2022 follow:
• Professional labor: 2.0 hours at $15.00 per hour
• Credit checks: $55.00
Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $3,500 per
month. On average, Phoenix is successful in placing one tenant for every three applicants.
Actual rental applications in August 2022 were 240. Phoenix paid $8,000 for 420 hours of professional labor. Credit
checks went up to $58 per application. Other costs In August 2022 (lease, secretarial help, and utilities) were $4,100. The
average first monthly rentals for August 2022 were $940 per apartment unit for 80 units.
Required:
1. (a) What is the master budget varlance for August 2022? (b) What is the total flexible budget variance for the month? (c) What is the
sales volume variance for the month?
2. Determine the professional labor rate and labor efficiency variances for August 2022.
The master budget variance
The total flexible budget variance
The sales volume variance
Direct labor rate variance
Direct labor efficiency variance
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