Problem #2-Flexible Budget-Selling &Admin Expense Only Static Budget Budget Results Variance Flex Actual Memo: Sales Selling & Admin Expenses Variable Sales Commissions-8% of sales var Advertising Exp-3% of sales Selling Supplies Exp-1% of sales Office Supplies-2% of sales $ 3,000,000 3,738,00o $ 240,000 90,000 30,000 60,000 $ 420,000 $301,500 110,862 38,241 74,083 S 524,686 Total Variable Sell & Admin Exp Fixed Sales Salaries Sales Travel expense Advertising- fixed portion Administrative salaries Rent Exp Utilities/Phones/Internet Total Fixed Sell & Admin Exp $127,200 30,000 75,000 150,000 24,000 6,000 $ 412,200 $127,200 32,464 75,000 150,000 24,000 5,968 $ 414,632 Total Selling & Admin Exp 832,200 $ 939,318 Required: Compute the "flex budget" and then calculate your variances based on the flex budget to actual comparison. Indicate which variances you would investigate and why you would investigate them