Explain the variances in the sheet below. Revenues (billed out): - Labor (hrs.) - Labor rate (S/hr.)

Explain the variances in the sheet below.

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Revenues (billed out): - Labor (hrs.) - Labor rate (S/hr.) - Parts (S/hr.) Costs: - Labor (hrs.) - Labor (S/hr.) - Parts (% of revenue) Revenues: - Labor - Parts Costs: - Labor - Parts Gross Margin Overhead: - Space - General & Admin. - Depreciation - Legal & Regulatory Budget 3,456 120 345 414,720 437,760 1,192,320 1,168,092 Total Revenues 1,607,040 1,605,852 Total Overhead 3,840 42 80% 161,280 168,650 953,856 899,431 Total Costs 1,115,136 1,068,080 Net before Taxes Taxes Net after Taxes Actual 3,648 120 320 3,877 44 77% 75,000 35,000 68,500 18,000 196,500 491,904 537,772 75,000 35,000 68,500 18,000 196,500 295,404 341,272 62,035 71,667 233,369 269,605 MRO Department - 2020 Results Fav./(Unfav.) 192 - (25) 37 2 -3% $ Fav./(Unfav.) 23,040 (24,228) (1,188) 7,370 (54,425) (47,056) 45,868 45,868 9,632 36,235 Labor Variance Revenue (hrs.) Rate (S/hr.) Costs (hrs.) Labor (S/hr.) Total Change in Gross Margin 45,868 23,040 (1,610) (5,760) 15,671 Parts Variance Revenue (hrs.) Revenue (S/hr.) Costs (hrs.) Costs (S/hr.) Mark-up Other Total 66,240 (90,468) 52,992 fav (68,565) unf (35,770) unfav (3,082) unfav tie out 30,197 Insert your text explanation of the variances here. Revenues (billed out): - Labor (hrs.) - Labor rate (S/hr.) - Parts (S/hr.) Costs: - Labor (hrs.) - Labor (S/hr.) - Parts (% of revenue) Revenues: - Labor - Parts Costs: - Labor - Parts Gross Margin Overhead: - Space - General & Admin. - Depreciation - Legal & Regulatory Budget 3,456 120 345 414,720 437,760 1,192,320 1,168,092 Total Revenues 1,607,040 1,605,852 Total Overhead 3,840 42 80% 161,280 168,650 953,856 899,431 Total Costs 1,115,136 1,068,080 Net before Taxes Taxes Net after Taxes Actual 3,648 120 320 3,877 44 77% 75,000 35,000 68,500 18,000 196,500 491,904 537,772 75,000 35,000 68,500 18,000 196,500 295,404 341,272 62,035 71,667 233,369 269,605 MRO Department - 2020 Results Fav./(Unfav.) 192 - (25) 37 2 -3% $ Fav./(Unfav.) 23,040 (24,228) (1,188) 7,370 (54,425) (47,056) 45,868 45,868 9,632 36,235 Labor Variance Revenue (hrs.) Rate (S/hr.) Costs (hrs.) Labor (S/hr.) Total Change in Gross Margin 45,868 23,040 (1,610) (5,760) 15,671 Parts Variance Revenue (hrs.) Revenue (S/hr.) Costs (hrs.) Costs (S/hr.) Mark-up Other Total 66,240 (90,468) 52,992 fav (68,565) unf (35,770) unfav (3,082) unfav tie out 30,197 Insert your text explanation of the variances here.

Answer rating: 100% (QA)

From the given sheet we can analyze the variances in different categories Labor Variance Labor hrs The actual labor hours worked were 3877 which is 37 ... View the full answer