LO 5 udget variance for labour, $300 F Problems 7-30 Variance analysis, non-manufacturing setting. Stevie McQueen has run Lightning Car Detailing for the past 10 years. His static-budget and actual results for June 2018 are provided below. Stevie has one employee who has been with him for all 10 years that he has been in business. He has not been as lucky with his second and third employees. Stevie is hiring new employees in those positions almost every second month. It usually takes 2 hours to detail a vehicle. It takes as long for the seasoned employee as for the new ones, as the former tends to put more into the job. Stevie pays his long-term employee $20 per hour and the other two employees $10 per hour. Stevie pays all employees for 2 hours of work on each car, regardless of how long the work actually takes them. There were no wage increases in June. Actual 225 $39,375 Lightning Car Detailing Actual and Budgeted Statement of Comprehensive Income For the Month Ending June 30, 2018 Budget Cars detailed 200 Revenue $30,000 Variable costs: Costs of supplies 1,500 Labour 5,600 Total variable costs 7,100 Contribution margin 22,900 Fixed costs 9,500 Operating income $13,400 2,250 6,000 8,250 31,125 9,500 $21,625 LO 5 udget variance for labour, $300 F Problems 7-30 Variance analysis, non-manufacturing setting. Stevie McQueen has run Lightning Car Detailing for the past 10 years. His static-budget and actual results for June 2018 are provided below. Stevie has one employee who has been with him for all 10 years that he has been in business. He has not been as lucky with his second and third employees. Stevie is hiring new employees in those positions almost every second month. It usually takes 2 hours to detail a vehicle. It takes as long for the seasoned employee as for the new ones, as the former tends to put more into the job. Stevie pays his long-term employee $20 per hour and the other two employees $10 per hour. Stevie pays all employees for 2 hours of work on each car, regardless of how long the work actually takes them. There were no wage increases in June. Actual 225 $39,375 Lightning Car Detailing Actual and Budgeted Statement of Comprehensive Income For the Month Ending June 30, 2018 Budget Cars detailed 200 Revenue $30,000 Variable costs: Costs of supplies 1,500 Labour 5,600 Total variable costs 7,100 Contribution margin 22,900 Fixed costs 9,500 Operating income $13,400 2,250 6,000 8,250 31,125 9,500 $21,625