·Budgeting and Variance Analysis: Company X budgeted sales of $1,000,000 with variable costs of $600,000 and fixed costs of $300,000. Actual results show sales of $900,000, variable costs of $540,000, and fixed costs of $310,000. On the other hand, Company Y budgeted sales of $800,000 with variable costs of $480,000 and fixed costs of $200,000. Actual results show sales of $850,000, variable costs of $510,000, and fixed costs of $190,000.

• Requirement 1: Compute the sales volume variance and sales price variance for both companies.
• Requirement 2: Calculate the variable cost variance and fixed cost variance for both companies.
• Requirement 3: Analyze the variances and recommend actions for performance improvement for each company.