I need question b answered on the first sheet and 1 and 2 answered for the income statement sheet

BUDGETING SPREADSHEET This spreadsheet workbook is comprised of five different worksheets--see worksheet tabs at the bottom of this screen. Nordic Company manufactures and sells one product made of two raw materials: RM-A and RM-B. It prepares its master budget on a quarterly basis. The following data have been assembled to assist in the preparation of the master budget for the second quarter: a. As of March 31 (the end of the prior quarter), the company's balance sheet showed the following account balances: Balance Sheet -- 3/31/20XX Cash Accounts Receivable Inventories Plant/Equipment (net) $9,000 54,000 15,051 202,400 280,451 March 31 inventories are comprised of the following: Raw Materials Inventory: RM-A RM-B Finished Product Inventory Accounts Payable Capital Stock Retained Earnings $22,100 190,000 68,351 280,451 Quantity Amount 1,300 gallons 800 lbs 210 units $2,600 2,560 9,891 $15,051 b. Actualsales for March and budgeted sales for April-July are presented below. Selling price is $90 per unit. March April May June July 1,500 1,900 2,100 1,700 1,300 Sales Quantity $135,000 $171,000 $189,000 $153,000 $117,000 Sales Dollars c. Sales are 20% cash and 80% on credit. 75% of credit sales are collected in the month month following the sale; 25% are collected in the second following month. Concerning the accounts receivable balance at March 31, $41,000 is expected to be collected in April and the remainder in May--this is an exception to the collection assumptions specified above. d. Manufacturing costs are budgeted as follows (overhead costs are applied to product based on machine hours using a QUARTERLY overhead application rate). Raw Materials: 4 RM-A 2 RM-B 1.5 Dir Labor Overhead: $5.50 Variable $13,500 Fixed gal per unit of finished product @ lbs per unit of finished product @ hrs per unit of finished product @ $2.00 per gal $3.20 per lb $13.00 per hr 0.5 machine hours per unit per machine hour @ per month (includes $1000 per month depreciation expense) e. Non-manufacturing expenses are budgeted as follows: Administative salaries $8,500 Shipping 2% of sales Advertising $10,000 Depreciation $3,000 Other Expenses 5% of sales f. Assume that ALL ending inventories are required to be equal to 10% of the following month's production/sales requirements. g. 60% of all raw materials purchases, overhead, and non-manufacturing expenses (except salaries) are paid for in the month of purchase and 40% in the following month; all wages Actual Information -- 2nd Quarter Manufacturing Operations Actual Information -- 2nd Quarter Manufacturing Operations Quantity Quantity RM-A Used in Production1 RM-B Used in Production1 Direct Labor Variable Overhead Fixed Overhead Total 5,840 units 3,017 Mach hr Finished Product Production Machine Hours Master Budget 2nd Qtr $ 24,960 11,242 8,575 3,017 $53,040 $41,483 $117,649 $15,492 $39,653 $211,638 gal lb DL hr M hr Flexible Budget 2nd Qtr Actual Results 2nd Qtr 5,700 units 5,840 units 2,850 Mach Hrs Raw Materials 5,840 units 2,920 Mach Hrs Total Variance $ 3,017 Mach Hrs Qty $ $ per unit Qty $ $ per unit Qty $ $ per unit RM-A 22,800 gal $45,600 2.0000 per gal 23,360 gal 46,720 2.000 per gal 24,960 gal $53,040 2.125 per gal 6,320 RM-B 11,400 lb $36,480 3.2000 per lb 11,680 lb 37,376 3.200 per lb 11,242 lb 41,483 3.690 per lb 4,107 Direct Labor 8,550 DLhrs $111,150 13.0000 per DL hr 8,760 DLhrs 113,880 13.000 per DL hr 8,575 DL hrs 117,649 13.720 per DL hr Variable Overhead 2,850 Mhrs $15,675 5.5000 per M hr 2,920 Mhrs 16,060 5.500 per M hr 3,017 M hrs 15,492 5.135 per M hr Fixed Overhead $40,500 Budgeted Total Cost $249,405 Variance Analysis (a) Material Price Variance (RM-A) 41,495 Applied 39,653 Actual 43.7553 per unit 255,531 43.7553 per unit $267,317 NOTE: The ONLY real difference between the flexible budget and master budget is volume of finished goods. Flexible budget is still based on budgeted usage rates and budgeted cost per unit of variable resources. Note2: Applied = Rate x Activity Basis, where Rate = Budgeted Ovhd $ / Budgeted Activity Basis 3,120 U Material Quantity Variance (RM-A) 3,200 U Material Price Variance (RM-B) 5,509 U Material Quantity Variance (RM-B) (1,402) F Labor Rate Variance 6,174 U Labor Efficiency Variance (2,405) F Var Ovhd Spending Variance (1,101) F Var Ovhd Efficiency Variance 534 U Fixed Ovhd Budget Variance 847 F Fixed Ovhd Volume Variance 995 F (b) Write a brief analysis that refers to variances to explain why actual costs ($265,211) are different from the master budget costs ($233,653). Fixed Budget Volume Quantity-related Cost-per-unit-related 3,769 (568) (1,842) 45.7735 per unit 11,787 Master Budget Income Statement -- 2nd Quarter Sales Variable Manufacturing Variable Period Costs Contribution Margin Fixed Manufacturing Fixed Period Costs Net Income 5,700 units @ @ @ 90 per unit 24 per unit 6 per unit 513,000 135,090 35,910 342,000 Flexible Budget Income Statement -- 2nd Quarter 5,800 units @ @ @ 90 per unit 24 per unit 6 per unit 40,500 21,500 522,000 137,460 36,540 348,000 Actual Income Statement -- 2nd Quarter 5,800 units @ @ @ 95 per unit 25 per unit 10 per unit 41,495 21,500 280,000 551,000 143,086 60,610 347,304 39,653 65,640 285,005 REQUIRED: 1. 'Explain why the actual income statement is different from the master budget income statement. Your response should address these reasons: Sales price and sales volume are different from expected Quantity of variable resources used in production are different from expected Costs per unit of variable resources are different from expected Fixed costs are different from expected ANSWER 1. 2. What additional information would be needed to determine the market size variance and the market share variance related to sales revenues? ANSWER 2. 242,011 Actual Sales 5,800 units @ $95 per unit Actual Period Costs Administative salaries Shipping Advertising Depreciation Other Expenses $25,890 18,183 33,750 6,000 42,427 126,250