Question 1 The Marketing Director of VCC Limited is dissatisfied with the variances reported to him on the basis of actual costs being compared with the fixed budget for the costs attributed to the marketing function. As the management accountant, he is seeking your help in preparing a flexible budget for the calendar year 2021, based on the following information which is based on an estimated sales level of $10 million unless otherwise stated. Fixed costs Salaries -sales representatives Sales office Salary-related costs Rent Depreciation: Furniture Cars Insurance Advertising Variable costs Bad debts Sales representatives' commission Salary-related costs 121/20 Sales representatives' ordinary expenses Stationery and postage Agency fees Semi-variable costs Telephone rentals Metered calls Sales representatives" car expenses excluding depreciation: Fixed Variable S000 200 60 32 100 5 67 20 250 64 -8 25 100 50 80 2,000 14.000 7.000 48.000