Rent Locaters Inc. helps owners of rental properties find renters and charges the owners one-half of...

 

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Rent Locaters Inc. helps owners of rental properties find renters and charges the owners one-half of the first month's rent for the service. For August 2019, Rent Locaters expects to find renters for 100 apartments with an average first month's rent of $960. Budgeted cost data per tenant application for 2019 is as follows: Help Save & Exit Submit • Professional labor: 1.5 hours at $20.00 per hour • Credit checks: $63.00 Rent Locaters Inc, expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $4,300 per month. On average, the company is successful in placing one tenant for every three applicants. Actual rental applications in August 2019 were 270. Rent Locaters paid $8,600 for 400 hours of professional labor. Credit checks went up to $68 per application. Other costs in August 2019 (lease, secretarial help, and utilities) were $4,900. The average first monthly rentals for August 2019 were $1,060 per apartment unit for 90 units. Required: 1. (a) What is the total operating income variance for August 2019? (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 2019. 1a. The total operating income variance 1b. The total flexible-budget variance 1c. The sales volume variance 2. Direct labor rate variance Direct labor efficiency variance Activate Windows Rent Locaters Inc. helps owners of rental properties find renters and charges the owners one-half of the first month's rent for the service. For August 2019, Rent Locaters expects to find renters for 100 apartments with an average first month's rent of $960. Budgeted cost data per tenant application for 2019 is as follows: Help Save & Exit Submit • Professional labor: 1.5 hours at $20.00 per hour • Credit checks: $63.00 Rent Locaters Inc, expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $4,300 per month. On average, the company is successful in placing one tenant for every three applicants. Actual rental applications in August 2019 were 270. Rent Locaters paid $8,600 for 400 hours of professional labor. Credit checks went up to $68 per application. Other costs in August 2019 (lease, secretarial help, and utilities) were $4,900. The average first monthly rentals for August 2019 were $1,060 per apartment unit for 90 units. Required: 1. (a) What is the total operating income variance for August 2019? (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 2019. 1a. The total operating income variance 1b. The total flexible-budget variance 1c. The sales volume variance 2. Direct labor rate variance Direct labor efficiency variance Activate Windows

Answer rating: 100% (QA)

Solution 2 Budgeted labor rate 15 hours at 2000 per hour per tenant application Actual hours wo... View the full answer