Question 2: Flexible Budget You have recently taken over as the General Manager for Pineview golf club. The most recent monthly Budget versus Actual Income Statement ended May has been supplied below (as well in the excel template file). Pineview Golf Club Income Statement For the Month ended May Number of golf rounds Budget 2,500 Actual 3,000 Revenue Golf Rounds 62,500 Power Carts 37,500 100,000 75,000 40,000 115,000 Variable Costs Labour Golf Cart fuel Maintenance Small Tools Depreciation 9,375 1,250 12,500 450 1,000 24,575 15,000 6,000 10,000 500 1,200 32,700 Fixed Costs Management Fees Rent Utilities 5,000 6,500 1,500 13,000 5,000 6,500 1.750 13,250 The owner of the golf course is happy about the results, however you are not so confident on that assumption Required: - Prepare a flexible budget to actual income statement and evaluate if the owner of the golf courses opinion on the results of the golf course are correct. Briefly discuss Are there any line items that you would want to investigate the differences in variances? Which ones and why