I cannot understand what my boss is thinking. We had a brilliant month. We produced more than budget and our sales are also higher than budgeted. Why does he tell me that my department is responsible for the lower profit for the month? He gave me the following report that he received from the accountants. The budgeted sales was 25000 units while the actual sales was 32000. I don't understand these variances at all. Can you help me? How is it possible that the variances are negative while our turnover is higher? REQUIRED 1. Briefly describe the purpose of flexed budgeting. (3) 2. Prepare a flexed budget for the month and comment on the variances. (9)