At the end of August, the management reported that in the month of August the number of miles actually transported was be 82,500. The following table summarizes the actual values for the month of August. Account Revenue Cost of Goods Actual $1,785,800 $588,050 $341,525 $139,275 $81,100 Wages and Salaries Paper Rent Insurance $2,600 Fuel $38,525 $162,650 Miscellaneous Required: Prepare the company's (a) static budget; (b) flexible budget in addition to the actual budget. Then show the relevant (i) volume variances and (ii) price variances and if favorable or unfavorable. 3 Paragraph - Bi s 2 Mass Shipping Limited is a company that packages and transports large goods for clients located around the world. Data related to the company's static budget for the month of August is presented in the following table where 'q' is the number of miles transported: Account Formula Revenue $24.800 Cost of Goods $6.309 Wages and Salaries Paper $69,400 + $ 2.250 $12,100 + $1.550 $43,800 Rent Insurance $8,600 Fuel $22,500 + $0.959 $7,000 + $9.900 Miscellaneous At the end of July, the management estimated that in the month of August the number of miles transported would be 80,000. At the end of August, the management reported that in the month of August the number of miles actually transported was be 82,500. The following table summarizes the actual values for the month of August. Account Revenue Cost of Goods Actual $1,785,800 $588,050 $341,525 $139,275 $81,100 Wages and Salaries Paper Rent Insurance $2,600 Fuel $38,525 $162,650 Miscellaneous Required: Prepare the company's (a) static budget; (b) flexible budget in addition to the actual budget. Then show the relevant (i) volume variances and (ii) price variances and if favorable or unfavorable. 3 Paragraph - Bi s 2