Assignment 4) Flexible Budgets and Performance Reporting 25\% You are working in the company LIK, assisting the CFO. The company produces electric linear actuators. The actuators are used in several industries among others healthcare, office furniture, industrial automation, and agriculture. You are looking into setting up a flexible budget and you have determined the following cost formulas for the company's normal operating range of 14,000 to 30,000 machine-hours each month: To illustrate to the company's CEO how a flexible budget works, you have gathered the following actual cost data for the Month of November, in which the company worked 21,000 machine-hours. There are no changes in the fixed costs, apart from depreciation. Question 1 A. Prepare a flexible budget for the company in increments of 2,000 machine-hours from 14,000 to 30,000 machine-hours. Question 2 A. Prepare an overhead performance report for the company in November. This should be based on actual costs versus flexible budgeted costs. Make a written conclusion in 23 sentences on your findings. As additional information, you have discovered, that 21,600 actuators were produced in November. The standard (machine-hours) allowed per actuator is equal to 50 minutes. A. Make a written statement (in max. 4-5 sentences) about the overhead efficiency variance in November determined in hours or actuators (units), and use your calculations as supporting arguments. What could be the reason for a variance within overhead efficiency? Question 4 Comment (in max. 9-10 sentences) on the following statements. Not connected to previous questions A. Explain the term "denominator activity", use an example to illustrate your understanding B. Define what a flexible budget is, and explain the difference between a static budget and a flexible budget