Fatima salon experienced the following revenue and expenses for the month of February 2022. The salon had an initial expected customer as 5,000 customers in her salon, unfortunately, the customers dropped to 4,500. The revenue charge per customer is 20, AED.

The expenses incurred are as follows: Soap 1; Cream 2.5; Oil 1.5; Brush 2.0; Fixed cost office rental 20,000; Overhead fixed 10,000; wages variable 0.5

a. Compute the actual budget

b. Compute the flexible budget and find the variance

c. Compute the profit for both the actual, variance and the flexible budget

d. Indicate if the activity variances and the flexible budget are favourable or unfavorable