plz verfy work

Assume that owners decided to go ahead with the Canmore expansion (first introduced in question 4). The junior accountant has prepared the following report to compare the static budget (from question 4) to the actual results. The owners have asked you to complete a variance analysis. Required: Part A (8 marks)- Create a Static Budget Report Variance Analysis, indicating whether variances are favorable (F) or unfavorable (U). All variance amounts should be shown as positive numbers. 5 7 Sales in Units 8 Sales Static Budget Actual Variance Favorable or Amount Results Amount Unfavorable 4,048 5,170 1,122 Favorable 506,000 S 620,400 114.400 Favorable 216,000 55,660 225,000 93,060 318,060 302,340 9,000 Unfavorable 37,400 Unfavorable 46,400 Unfavorable 68,000 Favorable 271,660 234.340 9 Less: Variable Costs: 10 Cost of Goods Sold 11 Sales Commissions 12 Total Variable Costs 13 Contribution Margin 14 Less: Fixed Costs: 15 Advertising 16 Property Taxes 17 Rent 18 Salaries & Wages 19 Total Fixed Costs 20 Net Operating Income 21,000 9,000 42.000 108,000 22,000 10.000 45,000 112,000 189,000 113,340 1,000 Unfavorable 1,000 Unfavorable 3,000 Unfavorable 4,000 Unfavorable 9.000 Unfavorable 180.000 54,340 59,000 Favorable a Required: Part B (12 marks) - The owners can see that the company sold a different amount of units than budgeted. They have asked you to create a flexible budget report. Favorable (F) or Unfavorable (U) Flexible Budget Amount 5,170 $ 620,400 Actual Variance Results Amount 5,170 620,400 IN/A N/A Sales in Units Sales Less: Variable Costs: Cost of Goods Sold 2 Sales Commissions 3 Total Variable Costs 4 Contribution Margin 5 Less: Fixed Costs: 36 Advertising 37 Property Taxes 38 Rent 39 Salaries & Wages 225,000 93,060 318,060 302,340 225,000 Favorable 93,060 Favorable 318,060 Favorable 302,340 Favorable 21,000 9,000 42.000 108,000 180.000 54.340 22.000 10,000 45,000 112,000 189,000 113,340 1,000 Unfavorable 1,000 Unfavorable 3,000 Unfavorable 4,000 Unfavorable 9,000 Unfavorable 59,000 Favorable 40 Total Fixed Costs 41 Net Operating Income 42 Management was pleased on the results based on the statie budget report. Should they be pleased? What does the flexible budget tell you? What are your recommendations to management based on the flexible 43 budget report