a$.$ Based on the simple $($original$)$ operating budget, calculate the revenue, cost, and profit variances $($see

Exhibit $8\mathrm{.}3,$ part IV$).$ Indicate if favorable $($F$)$ or unfavorable $($U$).$ Hint: complete the following table:

b$.$ Explain the relationship between a simple budget and a flexible budget.

E$-$What is the advantage of flexible variance analysis compared to simple variance analysis?