Part 1: Flexible Budget Performance report Batches Revenues Expenses Direct Materials Revenue and Activity Planning (Static) Formulas Q= Actual Budget 1,600 Selling Variances F/U - $310Q 504,000 8,000 F Flexible Budget 1,600 496,000 Variances F/U Budget 50 F 15,500 F 1,550 480,500 $30Q 62,370 14,370 U 48,000 1,500 U 46,500 Direct Labor $95Q 158,400 6,400 U 152,000 4,750 U 147,250 Manufacturing Overhead $94,000 +$15Q 121,660 3,660 U 118,000 750 U 117,250 Selling and Administrative Costs $28,100 +$6Q 35,000 (2,700) F 37,700 300 U 37,400 Total Expenses 377,430 21,730 U 355,700 7,300 U 348,400 Net Operating Income $ 126,570 $ (13,730) U $ 140,300 $ 8,200 F $ 132,100 Required: 1. Should the owner feel frustrated over with the variance report? 2. Prepare a flexible budget performance report for the school for June 3. Evaluate the school's performance for July.