Complete a performance report (Learning Objective 2)

Complete the performance report shown in SI 1-3 by filling in all missing values. Be sure to label each variance as favorable (F) or unfavorable (U). Then, answer the fol¬ lowing questions:

1. What was the total static budget variance?

2. What was the total sales volume variance.

3. What was the total flexible budget variance?

4. Show that the total sales volume variance and total flexible budget variance sum to the total static budget variance.

5. Interpret the variances and then give one plausible explanation for the vari¬ ances shown in this performance report.