3: FLEXIBLE BUDGETS AND PERFORMANCE ANALYSIS, AND STANDARD COSTING a. (TOTAL: 25 MARKS) Excellent Institute offers executive training programmes. It bases its budgets on two measures of activity (i.e., cost drivers): number of executives and number of programmes. The institute uses the following data in its budgeting: Revenue Instructor wages Office supplies Fixed element Variable element per per month ($) executive ($) Variable element per programme ($) 0 336 0 0 0 2000 0 52 30 47,700 13 29 Admin expenses In January, the institute budgeted for 1,870 executives and 174 programmes. The institute's income statement showing the actual results for the month appears below: Excellent Institute Income Statement For the month ended January 31 Actual students 1,670 Actual courses 172 Revenue Expenses: Instructor wages Office supplies Admin expenses Total expenses Net operating income Required: $560,600 350,110 93,040 85,728 528,878 $31,722 Prepare a flexible budget performance report showing both the institute's activity variances and revenue and spending variances for July. Label each variance as favourable (F) or unfavourable (U). (13 marks)