Josmin Sylvero is the monufocturing production supervisor for Perez Motor Works (PMW), o compony that monufoctures electrical motors for industrial applications. Trying to explain why she did not get the year-end bonus that she had expected, she told a friend, "This is the dumbest place l've ever worked. Lost yesr the compsny set up this budget ossuming it would sell 152,200 units. Well, it sold only 142,200. The compsny lost money and gave me o bonus for not using as much materials and labor as wos called for in the budget. This year, the company has the some 152,200 units goal and it sells 162,200. The company's making all kinds of money. You'd think l'd get a big bonus. Insteod, mansgement tells me I used more materials and lsbor than wos budgeted. They said the company would hove made a lot more money if l'd stayed within my budget. I guess l'll hove to wait for onother bod year before I get a bonus. Like I soid, this is the dumbest place l've ever worked." PMW's master budget and the octusl results for the most recent year of operating activity follow. Required c. Prepore oflexible budget and recalculate the budget variances. Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance)