Have Fun installed eight pools during July. Prepare an income statement performance report for Have Fun for July, using the table below as a guide. B Click the icon to view the table.) Assume that the actual sales price per pool is $13,400, actual variable expenses total $61,000, and actual fixed expenses are $19,100 in July. The master budget was prepared with the following assumptions: variable cost of $8,900 per pool, fixed expenses of $20,400 per month, and anticipated sales volume of seven pools at $13,400 per pool. Requirement 1. Compute the sales volume variance and flexible budget variance. Use these variances to explain to Have Fun's management why July's operating income differs from operating income shown in the static budget. Prepare an income statement report for Have Fun for July. (For accounts with a zero balance, make sure to enter "0" in the appropriate column. Label each variance as favourable (F) or unfavourable (U). If the variance is zero, do not select a label.) Have Fun Pools Income Statement Performance Report Month Ended July 31 Flexible Budget for Actual Results at Flexible Budget Actual Number of Sales Volume Static (Master) Budget Actual Prices Variance Output Units Variance Output units Sales revenue Variable expenses Fixed expenses Total expenses Operating income Use the sales volume variance and flexible budget variance to explain to Have Fun's management why July's operating income differs from operating income shown in the static budget. Have Fun's actual operating income was $ the static budget. There are two primary reasons: 1. Have Fun actually installed pool than expected. This operating income by $ 2. Have Fun's actual expenses to install 8 pools were $ than they should have been to install 8 pools. This flexible budget variance means that Have Fun did a job controlling cost. Have Fun Pools Income Statement Performance Report Month Ended June 30 (1) (2) (3) (5) (4) (3)-(5) (1)-(3) Flexible Actual Budget Results Flexible for Actual Sales Static at Actual Budget Number of Volume (Master) Prices Variance Output Units* Variance Budget* 10 -0- 10 2 F 8 Output units (pools installed) Sales revenue $121,000 $1,000 F $120,000 $24,000 F $96,000 Variable expenses 16,000 U 83,000 22,000 3,000 U 2,000 U 80,000 20,000 64,000 20,000 Fixed expenses -0- Total expenses 105,000 5,000 U 100,000 16,000 U 84,000 $ 16,000 $4,000 U $ 20,000 $ 8,000 F $12,000 Operating income Flexible budget variance, $4,000 U Sales volume variance, $8,000 F Static budget variance, $4,000 F Budgeted sale price is $12,000 per pool, budgeted variable expense is $8,000 per pool, and budgeted total monthly fixed expenses are $20,000