Question 02: (a) Distinguish between a Static and a Flexible Budget. Your Answer should explain the difference between a Fixed and Variable Expense. (Discuss in 150 - 200 Words) (b) What is a Master Budget? (Discuss in 150 - 200 Words) (c) Peter Cohen's Accountant has just finalised the monthly figures for August 2019 and has prepared the following schedules showing current Month and Year-To-Date Budgets and Actual: Peter Cohen Car Washing Performance Analysis and Variance Reports August 2019 Year-to-Date Analysis January to August 2019 Budget |Actual Variance |F/U |Budget Actual Cars expected to be washed Variance F/U 180 195 1,440 1,520 Expected Revenue per Job $30 $35 $30 $33 Total Revenue $5,400 $6,825 $43,200 $50,160 Less Variable Costs Labour Costs per Job 1,080 1,365 8,640 10,470 Consumables 180 210 1,440 1,980 Motor Vehicle Expenses 270 310 2,160 Total Variable Cost 2,790 1,530 1,885 12,240 15,240 Fixed Costs Advertising 200 200 1,600 1,600 Depreciation 250 250 2,000 2,000 Insurance 100 100 800 800 Mobile Telephone Costs 150 176 1,200 1,680 Office Costs 450 520 3,600 4,350 Total Fixed Cost 1,150 1,246 9,200 10,430 Total Costs 2,680 3,131 21,440 25,670 Net Income $2,720 $3,694 $21,760 $24,490 Required: Prepare a Report Comparing Actual to Budget for both the: (i) Current Month of August. (ii) Year-to-Date figures to disclose relevant variances for Revenue and Cost items and to signify whether the Variance is Favourable (F) or Unfavourable (U). (iii) Peter Cohen has requested a Performance Report for its Operations for the Year-to-Date