Grape Pesticide Inc. established the following standard price and costs for a termite control product they sell to exterminators. Variable Price and Cost Data (per unit) 2.222 out of 9 points (A-1, B-1, C-5, D-2) 4. Actual Cost Standard Cost 49.00 52.00 10.66 Sales Price 10.00 Materials Cost 11.90 12.00 Labor Cost 7.05 7.00 Overhead Cost 7.92 8.00 SG&A Cost Expected Fixed Costs (in total) Manufacturing Overhead 140,000 150,000 64,000 60,000 SGA The year 1 master budget uses an expected volume of 25,000 units. Actual production and sales volume for the year was 26,000 units. Using the information above and the table below, do the following: a. Prepare the pro forma income statement for the master budget b. Prepare a flexible budget income statement at the actual volume 1.222 c. Calculate both the volume variance and the flexible budget variance. Be sure to indicate if i. each variance is favorable or unfavorable O d. Choose two variance you would select to investigate further and discuss why you chose these variances to investigate. bto 26,000 X Standard Valuc Flexible Budget ct ct afl Amount and F=favorable or U-unfavorable Amount and Number of 26,000 25,000 F=favorable or Units U-unfavorable Flexible Budget Actual Value Standard Value Master Budget Actual Results Volume Variances Variances 14000 1400D Sales 52 49 Revenue Variable Manu- facturing Costs Materials 10 10.66 ComDO0 (17500 11.90 U Labor 12 7.05 Overhead 7 8 7.92 Variable SG&A 270024120 (24Qox) 64.00 94220 FX Contribution Margin Manu facturing Overhead 150,000 140,000 60,000 64,000 0,00) SG&A F X Net Income A