(10 marks) VCI is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting: Fixed element Variable element Variable element per month per student per course Revenue Faculty wages $ 0 $ 283 Course supplies $ $ 0 $ 0 $ 0 $3,070 0 $ 49 $ 37 Administrative expenses $26,350 $ 24 $ 49 In March, the school budgeted for 1,880 students and 85 courses. The school's income statement showing the actual results for the month appears below: VCI Income Statement For the Month Ended March 31 Actual students Actual courses Revenue Expenses: Faculty wages Course supplies Administrative expenses Total expense Net operating income 1,780 88 $396,340 213,450 61,090 77,062 351,602 $ 44,738 Required: Prepare a flexible budget performance report showing both the school's static budget variance and flexible budget variances for March. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) VCI Flexible Budget Performance Report For the Month Ended March 31 Actual Flexible Results Budget Variance Students 1,780 Courses 88 Revenue Expenses: Faculty wages Course supplies Administrative expenses Total expense Net operating income Static Flexible Budget Budget Planning Budget Variance 1,780 1,880 88 85