1. Haltson Transportation Company's general manager reports quarterly to the company president Athough the general manager was upset about not obtaining enough revenue, she was happy on the fim's operating performance. The company uses a budget based on detailed expectations that her cost performance was favorable; otherwise, her net income would be even worse. The for the forthcoming quarter. The general manager has just received the condensed quarterly president was not satisfied with the performance report and remarked, T can see some ment in performance report shown below (Click the icon to view the quarterly performance report.) comparing actual performance with budgeted performance because we can see whether actual revenue coincided with our best guess for budget purposes. But I can't see how this performance report helps me evaluate cost-control performance. Read the requirements Requirement 1. Prepare a columnar flexible budget for Haltson Transportation at revenue levels of $11,800,000, $12,000,000, and $12,200,000. Assume that the prices and mix of products sold are equal to the budgeted prices and mix. Begin with the flexible budget at revenues of $11,800,000, next, complete the fexible budget at revenues of $12,000,000 and, then, prepare the flexible budget at revenues of $12,200,000. (Enter all costs as positive numbers.) Haltson Transportation Company Flexible Budgets for Various Levels of Sales Net revenue Variable Costs $ 11,800,000$12,000,000 $ 12,200,000 Fuel Repairs and maintenance Supplies and miscellaneous Variable payrol Total variable costs Fixed Costs Supervision Rent Depreciation Other fixed costs Total foxed costs Total foxed and variable costs Operating inoome Requirement 2. Write out the fexible budget formula for costs as a function of revenue. (Enter any proportions in decimal form to two decimal places, xx.) Cost Requirement 3. Prepare a condensed table showing the static budget variance, the sales-activity varlance, and the fexoible-budget variance Begin with the actual results, then compiete the fexible budget columns and the stafe budget columns, Label each varance as favorable or unfavorable. (Enter all amounts as positive numbers x Revenue For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label. Actual Results Flexible Budget at ActualFlexible-BudgetFor Actual Activity LevelVariances Sales-ActivityStatic Budget Sales Activity Varlances Net revenue Variable costs Contribution margin Fxed costs Operating income (8 4)