900 Question 1 (8 points) The following flexible budget report was prepared for the sales manager of Junior Business for the second quarter of 2022 Flexible Budget Variance (F). (U), (N) Actual Results Static Budget Amount Flexible Budget Output (units) 1,000 1,000 Sales $ 102,000 $ 90,000 $ 100,000 Variable costs Direct Materials 40,500 36,000 40,000 Direct Labour 20,500 18,000 20,000 Total Variable Expenses 61,000 54,000 60,000 Contribution Margin 41,000 36,000 40,000 Fixed Costs Manufacturing Overhead 21,000 21,000 21,000 Operating Income $ 20,000 $ 15,000 $ 19,000 Required: 1. Assuming the sales manager has control over sales and selling costs, complete the flexible budget by indicating the amount of the flexible budget variance and whether each variance is Favourable (F) Unfavourable (U) or Neither (N) (7 marks) 2. Explain the use of a static budget. (1 mark)