1. Budgeted and actual income statement data for Anne Klein, which manufactures clothing, appear below: Budgeted Actual Revenue $ 85,000 $ 80,750 Variable manufacturing costs 13,000 12,500 Fixed manufacturing costs 5,000 5,200 Variable selling expenses 22,000 19,000 Fixed selling expenses 3,000 3,100 Administrative expenses 7,000 7,000 Operating income $ 35,000 $ 33,950 The difference between the actual and budgeted amounts of revenue was created by differences between expected and actual unit sales. (30pts) a. Prepare a flexible budget based on actual revenue. b. Calculate budget variances and indicate whether each variance is favorable or unfavorable. c. Comment briefly on Anne's overall performance. Examine the relationships among the variances and develop one question for the manager about the variances and their relationships.