1 REMEMBER TO SAVE YOUR WORK! 2 Question 2 - Variance performance report - Version A (12 marks) The movie division of Cadiz Co. is operated as a profit centre. The company uses flexible budget to me Budget variable costs and their percentage relationshins to sales aro: Budget fixed selling expenses consist of sales salaries $40,000 and advertising $13,200 Noncontrollable fixed costs are budgeted at $70,000. 1110 12 The actual selling expenses incurred in February 2020 , by the movie division are as follows: \begin{tabular}{rlr} 13 & Sales commissions & $17,200 \\ \hline 14 & Traveling & 24,700 \\ 15 & Delivery & 2,400 \end{tabular} 16 Fixed selling expenses consist of sales salaries $41,500 and advertising 12,000 . 17 Noncontrollable fixed costs are $65,000. 8 Required: Prepare a responsibility report, assuming that February budget and actual sales were both at $330,000. The report should be presented in a controllable margin statement format (from sales to controllable ma comparing the actual result to the flexible budget, and compute the variances. The variances should be labelled as F (favorable) or U (unfavorable). (12 marks)