Prepare a flexible budget and compute the sales and variable cost volume variances based on a comparison between the master budget and the flexible budget. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Master Budget - Flexible Budget = Volume Variance Allocated funds $22,818 Expenses: Variable expenses Meals 17,303 Postage 1,575 Fixed expenses Facility 1,300 Printing 980 Decorations 870 Speakers gift 160 Publicity 630 Total expenses 22,818 Surplus(deficit) $0 Required A

Compute flexible budget variances by comparing the flexible budget with the actual results. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

	Flexible Budget	-	Actual Results	=	Flexible Variances
Allocated funds			$22,818
Expenses:
Variable costs:
Meals			21,120
Postage			2,075
Fixed costs:
Facility			1,800
Printing			980
Decorations			870
Speakers gift			160
Publicity			630
Total expenses			27,635
Surplus(deficit)			$(4,817)