Joy Bell has run Helping Hand Maids,a specialty cleaning service for medical and dental offices, for the past 10 years. Her static budget and actual results for April 2017 are shown below.

Requirements

1.	How many offices, on average, did Bell budget for each employee? How many cars did each employee actually detail?
2.	Prepare a flexible budget for April 2017.
3.	Compute the sales price variance and the labor efficiency variance for each labor type.
4.	What information, in addition to that provided in the income statements, would you want Bell to gather, if you wanted to improve operational efficiency?

Helping Hand Maids Actual and Budgeted Income Statements For the Month Ended April 30, 2017 Budget Actual 250 280 Offices cleaned $ Revenue 45,000 $ 57,400 Variable costs: Costs of supplies 1,750 2,550 Labor 6,500 7,200 Total variable costs 8,250 9,750 Contribution margin 36,750 47,650 Fixed costs 9,400 9,400 $ 27,350 $ 38,250 Operating income Helping Hand Maids Actual and Budgeted Income Statements For the Month Ended April 30, 2017 Budget Actual 250 280 Offices cleaned $ Revenue 45,000 $ 57,400 Variable costs: Costs of supplies 1,750 2,550 Labor 6,500 7,200 Total variable costs 8,250 9,750 Contribution margin 36,750 47,650 Fixed costs 9,400 9,400 $ 27,350 $ 38,250 Operating income