please include interpretation of solution in 5 sentences

Exhibit 3: Expense Items: Budget 2 2000 Art Vadable Budet 100 191.250 Advertising and Promotion Administrative and Support Staff Information Systems Depreciation Dues and Subscriptions Education and Training Equipment Leases Insurance Professional Services Office Expense Office Supplies Postage Rent - Real Estate Telephone Travel and Entertainment Utilities Total 23.400 22.700 13,100 38.200 38.900 23.500 222 440 23.500 .22.229. 39,500 34.700 42.100 36.550 86.200 89 500 27 300 24 700 117.250 40.000 38.500 57 800 56 300 25.000 24.00 $38.560 $ 877 300 117260 Question 3: Prepare a variance analysis of expenses based on the additional information supplied in Exhibit 3. Formulas and approach: Variance analysis formula: Total revenue variance - AR-ER Flexible budget: Foed expenses variable expenses Volume variance: (ADE) cost per unit Prepare a flexble budget to display the spending variance attributable to fixed (committed) and variable expenses. Calculate the volume variance for the difference in number of consultants Your Solution: Budgeted Variable Budgeted Fixed % Variable Budget 15.100 191.250 120,000 22.700 13.10 38.900 22 440 34.700 Actual Advertising and como 22.100 Admin.and.vrea staff Information systems 9.00 Russ.and.berton Education and training avements Slange Professionals Olle ren Die SRI .200 Postage ..27.200 Rent.realestate 260 Teleshone... 40.000 Travel and entertainment 57.800 26.600 Total....938.560 Number of consultants Budgeted variable consultant 550 RENDE 89.600 24,700 117.250 30.500 56.300 24.000 877309. TICLE Calculate spending variance from flexible budget Actual FREDRA Budgeted Budgeted Actual Variable per Number of Consultant Consultants Flexible Budest Spending Variance Favorable! Unfavorable2 Actual Budgeted Budgeted Number of Number of Variable per Consultants. Consultants Consultant Calculate volume variance Volume Varian Favorable/ Unfavorable