Galler Tax Services specializes in preparing individual tax returns. Revenue is eamed from completed returns for all clients. Direct labour for part-time preparers is the primary cost of the company. Roy Galler, the owner, has received the following performance report for the current year: 1 2 3 4 5 Galler Tax Services Performance Report For the Year Ended June 30, 2021 Actual 500 $101,910 Budget 540 $109,350 Variances 40U $7,440 7 Nurnber of returns Service fees 10 Variable costs: 11 Direct labour 12 Supplies Utilities 74 Training 5 Overhead 6 Total variable costs 7 Contribution margin 8 Fixed overhead Operating Income (loss) 54,820 1,830 4.750 4,090 32.550 98,040 3,870 3,100 $770 58,455 2,025 5,940 4,590 35,100 106,110 3,240 2,500 $740 3,635 F 195 F 1,190 F 500 F 2,550 F 8,070 F 630 F 600 U $30 F Required: 21. Is the original performance report useful? Why or why not? (2 marks) Useful Reason 2. Prepare a performance report using the flexible budget approach. (11 marks) Note: You may not need to use all the blue and green hightlighted cells. Galler Tax Services Flexible Budget Performance Report for the Year Ended June 30, 2021 Per return Actual Budget Variances Number of resales Total selling fees Variable costs Direct labour Supplies Utilities Training Overhead Total variable costs Contribution margin Fixed overhead Operating income (1055) 3 Based on the performance report in part 2, does Galler need to be concerned? Why or why not? [2 marks] Concerned Reason