Can you please help me do the following problem? I do not understand what goes where.
Flowing Bubbles, Inc. produces multicolored bubble solution used for weddings and other events. The company sold 70,000 bubble kits during March, and its actual operating income was as follows: 3 (Click the icon to view the actual income statement.) The company's exible budget income statement for March follows: a (Click the icon to view the exible budget income statement) Read the @uirements. Requirement 1. Prepare the income statement performance report. Note: The master budget was based on expected sales volume of 65,000 bubble kits. (For accounts with a 0 balance, make sure to enter "0" in the appropriate column. Label each variance as favorable (F) or unfavorable (U). A variance of zero is considered favorable.) Flowing Bubbles, Inc. Income Statement Performance Report For the month ended March 31 Actual Flexible Budget Flexible Volume Master Variance Budget Variance Budget Output units IEIII= Sales revenue II Variable expenses: Cost of goods sold I I I II I Sales commissions expense I I I II I Utility expense I I I II I Fixed expenses: Salary expense II Depreciation expense I:I:II:I Rent expense I:|:||:|= Utility expense II TOIEI expenses _I=I:|I:I; Operating income I:I:I:II:I Requirement 2. What accounts for most of the difference between actual operating income and master budget operating income? for operating income is larger than the Z. Most of the difference between master budget operating income and bubble kits than expected. 1D DEEDS} The actual operating income resulted from Requirement 3. What is Flowing Bubbles' master budget variance? Explain why the income statement performance report provides Flowing Bubbles' managers with more useful information than the simple master budget variance. What insights can Flowing Bubbles' managers draw from this performance report? Flowing Bubbles' master budget variance is $ , meaning that its operating income is than expected. Choose two reasons why the income statement performance report provides Flowing Bubbles' managers with more information than the simple master budget variance. These variances suggest that the marketing department did a V job by selling V kits than expected, at a V sale price than expected. _I the appropriate column. Label each variance as favorable (F) or unfavorable (U). A variance of zero is considered favorable.) 0 DataTable _ X 0 Data Table Flowing Bubbles, Inc. Flowing Bubbles, Inc. Income Statement Flexible Budget Income Statement Month Ended March 31 Month Ended March 31 223,500 Flexible Budget Sales revenue Variable expenses: Cost of goods sold 88,300 Sales commissions 17,000 Utility expense 10,500 Fixed expenses: Sales FBVGHUB 35 Variable expenses: per Output Unit Output Units (Kits) 65,000 70,000 75,000 3:\") $ 201,500$ 217,000$ 232,500 Salary expense 35,100 Depreciation expense . . . _ 18,000 C051 OngOdS SOld 1.25 81,250 87,500 93,750 Rent expense 7.950 Sales commissions 0.20 13,000 14,000 15,000 3,000 Utility expense 0.15 9,750 10,500 11,250 179,850 Fixed expenses: 43550 Salary expense 33,000 33,000 36,300 Depreciation expense 18,000 18,000 20,700 Rent expense 9,000 9,000 15,000 3,000 3,000 3,000 $ 167,000 $ 175,000 $ 195,000 $ 34,500 $ 42,000 $ 37,500 Utility expense Total expenses Operating income Utility expense Total expenses Operating income hat is Flowing Bubbles' master budget variance? Explain why the incom- Iudget variance. What insights can Flowing Bubbles' managers draw fro taster budget variance is $ |:\":|, meaning that
