J K L E M N A O B C D G H Fougere Realtors, Inc. Performance Report For the year ended December 31, 2007 Budget Actual Variance Number of home re-sales 180 202 22 F Variable expenses Sales commissions $1,102,950 $1.205.183 $102.233 U Automobile 36,000 39.560 3,560 U Advertising 171.000 192.690 21.690 U General overhead 656.100 716 970 60.870 U Total $1.966,050 $2.154.403 $188,353 U Fixed expenses General overhead 60.000 62.300 12.300 U Total expenses $2.026.050 $2.216.703 $190.653 U Required: a) Explain the major weakness of this performance report and why all the yariances for the variable expenses are unfavourable (U) (5 marks) b) As a first step in helping Chris Fougere to evaluate cost expense control in the organization complete the following report for the year ended December 31, 2007, assuming the only cost driver is the number of home re-sales. (Note: Indicate any variance as either favourable (F) or unfavourable (U).) (15 marks) Budget Actual Variance Number of home re-sales 2022 Cover Page 01 02 03