Reference no: EM132075765

Question: You run a lab that performs a single blood test that calculates an overall 'wellness' assessment, providing a report that gives information on a number of key short and long term health indicators.

Before the start of the year you prepared a budget projecting sales, costs and profit on a monthly basis. This budget assumed monthly sales of 1700 units at a price of $33.50 each. You projected that variable costs would be $13 a unit in labor and $15 in materials/ supplies per test.

At the end of January, you looked at your actual results for the month and prepared a flexible budget.

Here are the 3 budgets side by side.

                                      Static                   Flexible                   Actual

Revenues                         $56,950               $47,737.50               $49,875

Variable Cost                    $47,600                $39,900                    $41,500

Fixed Cost                        $6,000                   $6,000                     $6,250

Profit                               $3,350                   $1,837.50                $2,125

                                       $3,350                   $1,837.50                $2,125

Your static budget included 800 hours of labor @ $27.625 per hour. You used 710 hours for a total of $17,750.

What is the labor variance, rate variance, and labor efficiency variance?