Flex Budget and Responsibility Reporting Monza Industries manufactures camera lenses. The President, after receiving the annual Manufacturing Budget Report from their accountant, called a managers' meeting to review 2021 results, as she was unhappy with the unfavourable variance of $1,220 in the Manufacturing Division The Manufacturing Manager has requested further analysis of the division's results as he believes Monza is under-performing mainly because marketing has set the selling price per unit too low. Th Accountant says everything is fine as the overall variance is only $1,200. Here is the report: A. Monza Industries Manufacturing Division Budget Report For the Year Ending December 31, 2021 Budget Actual Variance Activity Level (units) 5,000 5,200 Sales 62,500 62,400 100 U Less: Costs Variable manufacturing costs 25,000 26,520 1,520 U Fixed manufacturing costs 16,500 17,000 500 U Variable selling & admin 10,000 9,100 900 F Fixed selling & admin 7,500 7,500 N/A Total costs 59,000 60,120 1,120 U Net position 3,500 2,280 1,220 U What type of budget has Monza's accountant used and what is one major issue in using this type of budget? (2 marks) Type of Budget the accountant prepared (provided above)? Disadvantages of this type of budgeting ANWSER