Check Mate Primers, Inc., produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the customer's bank. The company's operating budget for September 2020 included these data: a (Click the icon to view the operating budget and actual results.) The executive vice president of the company observed that the operating income for September was much lower than anticipated, despite a higher-than-budgeted selling price and a lower-than-budgeted variable cost per unit. As the company's management accountant, you have been asked to provide explanations for the disappointing September results. Check Mate develops its exible budget on the basis of budgeted per-output-unit revenue and per-output-unit variable costs without detailed analysis of budgeted inputs. Read the @uiremens. Requirement 1. Prepare a static-budget-based variance analysis of the September performance. Begin with the actual results, then compute the static budget and the static-budget variances. Label each variance as favorable or unfavorable. Requirements Actual Static-Budget Static Results Variances Budget 1. Prepare a static-budget-based variance analysis of the September performance. Units sold 2. Prepare a exible-budget-based variance analysis of the September performance. Revenues 3. Why might Check Mate nd the exible-budgetbased variance analysis more informative than the static-budgetbased variance analysis? Explain your answer. Variable costs Contribution margin Fixed costs Done Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable or unfavorable. (For variances with a $0 balance, make sure to enter "0" in the appropriate eld. If the variance is zero, do not select a label. Enter operating losses with a minus sign or parentheses.) Operating income (loss) Requirement 2. Prepare a exible-budgetbased variance analysis of the September performance. Actual Flexible-Budget Flexible Sales-Volume Static Results Variances Budget Variances Budget I I I I I I I I I I I I I I Check Mate Printers, Inc., produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer a 2020 included these data: a (Click the icon to view the operating budget and actual results.) The executive vice president of the company observed that the operating income for September was much lower than anticipated, despite a higher-than management accountant, you have been asked to provide explanations for the disappointing September results. Check Mate develops its exible budg detailed analysis of budgeted inputs. Read the muirements. Begin with the actual results, then complete the exible budget columns and the static budget columns. Label each variance as favorable or unfavorable variance is zero, do not select a label. Enter operating losses with a minus sign or parentheses.) Actual Flexible-Budget Results Variances Flexible Budget Static Budget Sales-Volume Variances Units sold Revenues Variable costs Contribution margin Fixed costs Operating income (loss) Requirement 3. Why might Check Mate nd the exible-budgetbased variance analysis more informative than the statio-budgetbased variance analysi The exible-budget The primary reason for the i statiobudget variance is the V budget, which could be due to lV column, and the portion of the variance that arose because the sales volume was different than expected, as shown in the in unit volume. One explanation for this change is the : actual selling price from the budgeted price. Variable costs management or using i quality materials. Data table mber The budgeted amounts for September 2020 were: 12,000 $ 21 $ 7 $ 145,000 Number of checkbooks Selllng price per book Variable cost per book Fixed costs for the month The actual results for September 2020 were as follows: Number of checkbooks produced and sold Average selllng prlce per book Variable cost per book Fixed costs for the month $ 149.900 l: column. 7 the static-budget variance. This allows the managers to see the portion of the variance that arose because sales price and costs were either higher or lower than expected, as shown in the relative to the exbile