I've completed the table but struggling with these questions!

Answer the following questions (dollar amount; F or U?; Reason, when asked)

1. What is the flex budget variance for operating income?
2. What is the volume variance for operating income?
3. What do the flex budget variance and volume variance for operating income sum to? Does this equal the total master budget variance Yes or No? Should it always sum (or net) to the total master budget variance, even if one is U and one is F? Yes or No?
4. How much of the master budget variance for Sales was caused by an UNANTICIPATED increase in volume?
5. How much of the master budget variance for Commission Expense was caused by an UNANTICIPATED increase in volume?
6. How much of the master budget variance for Advertising Expense was caused by an UNANTICIPATED increase in volume?
7. How much of the master budget variance for CGS was caused by some factor OTHER THAN volume?
8. What could account for this variance?
9. How much of the master budget variance for Sales Revenue was caused by some factor OTHER THAN volume?
10. What could account for this variance?
11. How much of the master budget variance for Advertising Expense was caused by some factor OTHER THAN volume?
12. What could account for this variance?

2 Budget assumptions: 3 4 Volume 5 Sales Revenue Kelsey's Frozen Confectionaries Master Budget Performance Report For the month ended June 30 20,000 cases 50.00 per case $ 90% percent of sales MASTER BUDGET VAR. For U ACTUAL 21,460 VARIANCE 1,460 Volume (in cases) 20,000 7.396 F $ 1,131,020 $ 1,000,000.00 $ 131,020.00 13.196 F $ $ $ 30.00 per case 2.50 per case 2.00 per case 1.00% percent of credit sales S S S 6 Percent sold on credit 7 8 Variable Expenses: 9 CGS 10 Sales Commission 11 Shipping Expense 12 Bad Debt Expense 13 14 Fixed Monthly Expenses: 15 Salaries to 16 Lease on Distribution center 17 Depreciation on fleet & Equip 18 Advertising 19 Office rent, phone, internet 20 21 Management by exception 22 23 HINTS on EXCEL: 1 682,880 $ 58,685 S 44,213 S 16,930 $ 328,312 s 13.896 U U 17.49 U 10.596 U 88.196 U U 600,000.00 $ 82,880.00 50,000.00 $ 8,685.00 40,000.00 $ 4,213.00 9,000.00 $ 7,930.00 301,000.00 $ 27,312.00 S S Sales Revenue Less Variable Expenses: Cost of Goods Sold Sales Commissions Shipping Expense Bad debt expense Contribution Margin commodo Less Fixed Expenses: walates Salaries Lease on Distn center Lease on Deprec, on fleet/equip Advertising Office rent, phone, net Operating Income $ 40,000 $ 17,000 $ 12,000 $ 10,000 S 11,000 9.196 F S $ $ $ $ $ $ 43,000 $ 15,500 $ 12,000 $ 7,750 $ 12,300 $ 237,762 S 40,000 $ 3,000.00 17,000 $ (1,500.00) 12,000 $ 10,000 S 12,250.00) 11,000 $ 1,300.00 211,000 $26,762.00 7.596 U -8.896 F 0.096 F -22.596 F 11.896 U 12.796 F 15% Investigation rule Kelsey's Frozen Confectionaries Fexible Budget Performance Report For the month ended June 30 Volume (in cases) Sales Revenue Less Variable Expenses: Cost of Goods Sold Sales Commissions Shipping Expense Bad debt expense Contribution Margin Less Fixed Expenses: Salaries Lease on Distn center Deprec. on fleet/equip Advertising Office rent, phone, net Operating Income Flexible Budget FLEXIBLE Sales Volume ACTUAL Variance BUDGET Variance MASTER BUDGET 21,460 $ 21,460 1,460 20,000 S $ 1,131,020 $ 58,020.00 1,073,000 $ 73,000.00 $ 1,000,000.00 S $ 682,880 S 39,080.00 $ 543,800.00 $ 43,800.00 $ 600,000.00 $ 58,685 S 5,035.00 S 53,650.00 $ 3,650.00 $ 50,000.00 $ 44,213 S 1,293.00 $ 42,920.00 $ 2,920.00 $ 40,000.00 $ 16,930 S 7,273.00 $ 9,657.00 $ 657.00 $ 9,000.00 $ 328,312 S 5,339.00 $ 322,973.00 $ 21,973.00 $ 301,000.00 $ $ 43,000 $ 3,000.00 $ 40,000 $ $ 40,000 $ 15,500 $ (1,500.00) 17,000 $ $ 17,000 $ 12,000 $ s 12,000 $ $ 12,000 $ 7,750 S (2,250.00) 10,000 $ $ 10,000 $ 12,300 $ 1,300.00 $ 11,000 $ $ 11,000 $ 237,762 S 4,789.00 $ 232,973 $ 21,973.00 $ 211,000 All sales volume variances X X Flexible budget variances: Sales Revenue Cost of Goods sold Commission expense Shipping Expenses Bad debt expense Salaries expense Lease of distribution center Depreciation of fleet & Equip. Advertising expense Ofice rent, phone, internet X