Question \#1 (15 Marks) RONNOC Manufacturing Company manufactures and sells lawn mowers. - Prior to commencing the 2022 operating year forecasted production and sales was estimated to be 2.000 lawn mowers. - On completion of the 2022 operating year, it was determined that 2.200 lawn mowers were actually produced and sold. Management is eager to evaluate the company's performance for 2022 and has prepared the following partially completed Static-Budget Report showing the 2022 income statements for actual results and the initially prepared Static-Budget. RONNOC Manufacturing Company STATIC-BUDGET REPORT (partial) Income Statements For the Year Ending December 31, 2022 Required: 1.) Using the information provided above, calculate the Static-Budget variances for Fixed Costs (Rent and Insurance) AND indicate whether each variance is Favourable (F) or Unfavourable (U). 2.) Calculate the Flexible-Budget numbers for Variable Costs for 2022 . Then calculate the variances AND indicate whether each variance is Favourable (F) or Unfavourable (U). You must show all supporting calculations. If supporting calculations are not shown, marks will be deducted. 3.) Typically, the Static-Budget Report and the Flexible-Budget Report reveal significantly different performance results. Which of these two Budget Reports provides the most meaningful information to fairly evaluate management's performance (explain your answer)