After the rst month of operations. the printing department announced that its 1.rariable cost estimate oi $1 per page was too low. The rst month's actual costs were $51,000 to print 40,030 pages. Government accounts 0,000 pages Commercial accounts 2T,500 Central administration 3,500 'I'wc reasons were cited for higherthan-ertpected costs: All departments were using more printing services than planned, and government and internal jobs were using more tourcolor printing and more graphics than anticipated in the original variable cost projections. The printing department also argued that it would have to purchase additional fourcolor printing equipment if demand for fourcolor print ing continued to grow. 1. Compare the printing department actual results, static budget. and exible budget for the month just completed. 2. Discuss possible reasons why the printing department static budget was inaccurate. 3. An ABC study completed by a consldtant indicated that printing costs are driven by number of pages (at $.35 per page), and use of colors [at $1 extra per page [or color). a. Discuss the lilreli.r effects of using the ABC results for budgeting and control of nrinting