Solo is repair shop that run a business to fixing cars. The static budget and actual results for Jun 2019 are provided in the below table. There are two full time employees for in the repair shop. In addition at any given time, the manager also employs two other less experienced workers. It usually takes each employee 2 hours to fix a vehicle regardless of his experience. The manager of Solo pays the experienced employees $45 per vehicle and $25 for the other employees.
Budget     Actual
Car modification                  410         360
Revenue                           $63,580    $72,000
Variable costs:
1- Cost of supplies               1,386       1,260
2- Labor                             7,920         6,830
Total variable cost                8,778        7,980
Contribution margin            49,742      47,020
Fixed cost                          10,780       9,800
Operating income              38,962      37,220
1-      How many cars on average did Solo budget for each employee? How many cars did each employee actually fixed?
2-      Prepare a flexible budget for Jun 2019?
3-      Compute sales price variance and the labor efficiency variance for each labor type?