Download an Excel template for this problem online in MyAccountingLab or at http://www.pearsonhighered.com/Horngren.
Pilchuck Company manufactures tote bags and has provided the following information for September 2018:

Requirements
1. Prepare a flexible budget performance report, including the heading. Use the ABS function when calculating variances, and use the drop-down selections for F or U when describing the variances.
2. Calculate the Static Budget Variance for operating income, and label it as a F (favorable) or U (unfavorable) variance.