Reasons for the differences between the budgeted and actual data follow. 1. The president of the organization. Rodney Snow. increased the invitation list to include 1,000 former members. As a result. 4,000 invitations were mailed. 2. Attendance was 1,620 individuals. Because of higherthanexpected attendance, the luncheon was moved to a larger room, thereby increasing the facility charge to $1,500. 3. At the last minute, Ms. Hubbard decided to add a dessert to the menu. which increased the meal cost to $15.50 per person. 4. Printing, decorations, the speaker's gift. and publicity costs were as budgeted. Required :1. Prepare a exible budget and compute the sales and variable cost volume variances based 011 a comparison between the master budget and the exible budget. b. Compute exible budget variances by comparing the exible budget with the actual results. M c. Mr. Snow was extremely upset with the budget decit. He immediately called Ms. Hubbard to complain about the budget variance for the meal cost. He told Ms. Hubbard that the added dessert caused the meal cost to be $4,810 ($25,110 - $20,300) over budget. He added, \"I could expect a couple hundred dollars one way or the other, but several thousand is totally unacceptable. At the next meeting of the budget committee. Iwant you to explain what happened.\" Assume that you are Ms. Hubbard. What would you tell the members of the budget committee? (I. Since this is a notforprot organization, why should anyone be concerned with meeting the budget