Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month’s rent for this service

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Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month’s rent for this service. For August 2019, Phoenix expects to find renters for 100 apartments with an average first month’s rent of $1,070. Budgeted cost data per tenant application for 2019 follow: Professional labor: 1.5 hours at $18.00 per hour Credit checks: $70.00 Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $5,000 per month. On average, Phoenix is successful in placing one tenant for every three applicants. Actual rental applications in August 2019 were 270. Phoenix paid $8,100 for 390 hours of professional labor. Credit checks went up to $75 per application. Other costs in August 2019 (lease, secretarial help, and utilities) were $5,600. The average first monthly rentals for August 2019 were $1,200 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.