Assume that at the beginning of the year, the company settles on the production cost budget for 12,000 units as the most likely scenario and includes that in their master budget. At the end of the year, actual units produced for the year were 11,000 . Actual production costs are as shown on the spreadsheet. Required: 1) Prepare a performance report comparing actual results to the static budget (budget at 12,000 units). a. Compute the variance amount. Favorable variances should be shown with parentheses. b. Indicate whether the variance is Favorable - F or Unfavorable - U. 2) Prepare a performance report comparing actual results to a budget at the actual level of activity. a. Calculate the budget amounts for each of the cost components based on the cost formula amounts. b. Compute the variance amount. Favorable variances should be shown with parentheses. c. Indicate whether the variance is Favorable - F or Unfavorable - U. 3) Answer the two questions at the bottom