Assume the following information for the Chestnut Ridge Dog Kennel for 2004 Number of dogs cared for Budget 50 Actual 60 Fixed Costs C. Variable Costs: Food Supplies Total Costs $40,000 $45,000 $20,000 $10,000 $70,000 $21,000 $13,200 $79,200 Variable costs are linear in the number of dogs cared for. a. Calculate a flexible budget for 2004. b. Calculate the flexible budget variance for each of the three expense line-items for 2004, and indicate whether the variance is favourable or unfavourable. Assume that the actual results for 2004 are used as the basis for building the 2005 static budget, except that the kennel believes it will care for 50 dogs in 2005. Develop a static budget for 2005.