Larry's Lawn Service: Illustrating the deficiencies of the master (static) planning budget vs. Flexible budget. Required: Prepare Larry's master and flexible budgets. What is the flexible budget variance for Operating income? Is it positive (favorable) or negative (unfavorable)? A. Assume the following facts with respect to Larry's Lawn Service. Larry expects to mow 500 lawns during June. B. Assume that Larry prepared the planning budget for June as shown. The budget includes: 1. Two variable costs - gasoline and supplies and equipment maintenance of $20 per law mowed 2. Four fixed costs - office and shop utilities, office and shop rent, equipment depreciation, and insurance. Total $3,000 3. One mixed cost - wages and salaries are $30 per lawn mowed, plus contract wages of $5,000 4. Assume that Larry's actual results for June are 550 lawns mowed. He charged $75 for each