Relax-Time installed nine pools during May. Prepare an income statement performance report for Relax-Time for May, using the table below as a guide. (Click the icon to view the table.) Assume that the actual sales price per pool is $12,000, actual variable expenses total $62,000, and actual fixed expenses are $19,300 in May. The master budget was prepared with the following assumptions: variable cost of $8,800 per pool, fixed expenses of $20,000 per month, and anticipated sales volume of eight pools at $12,000 per pool Requirement 1. Compute the sales volume variance and flexible budget variance. Use these variances to explain to Relax-Time's management why May's operating income differs from operating income shown in the static budget. Requirement 1. Compute the sales volume variance and flexible budget variance. Use these variances to explain to Relax-Time's management why May's operating income differs from operating income shown in the static budget. Prepare an income statement report for Relax-Time for May. (For accounts with a zero balance, make sure to enter "0" in the appropriate column. Label each variance as favourable (F) or unfavourable (U). If the variance is zero, do not select a label.) Relax-Time Pools Income Statement Performance Report Month Ended May 31 Flexible Budget for Actual Results at Flexible Budget Actual Number of Sales Volume Static (Master) Actual Prices Variance Output Units Variance Budget Output units Sales revenue Variable expenses Fixed expenses Total expenses Operating income Use the sales volume variance and flexible budget variance to explain to Relax-Time's management why May's operating income differs from operating income shown in the static budget. Relax-Time's actual operating income was $ the static budget. There are two primary reasons 1. Relax-Time actually installed pool than expected. This operating income by $]. 2. Relax-Time's actual expenses to install 9 pools were s than they should have been to install 9 pools. This flexible budget variance means that Relax-Time did a job controlling cost.X Data table Relax-Time Pools Income Statement Performance Report Month Ended June 30 (1) (2) (3) (4) (5) (1)-(3) Flexible (3)-(5) Actual Budget Results Flexible for Actual Sales Static at Actual Budget Number of Volume (Master) Prices Variance Output Units* Variance Budget* 10 10 2 F Output units (pools installed) Sales revenue $121,000 $1,000 F $120,000 $24,000 F $96,000 Variable expenses 83,000 3,000 U 80,000 16,000 U 64,000 22,000 2,000 U 20,000 -0- 20,000 Fixed expenses 105,000 5,000 L 100,000 16,000 U 84,000 Total expenses $ 16,00 $4,000 U $ 20,000 $ 8,000 F $12,000 Operating income Flexible budget variance, Sales volume variance, $4,000 U $8,000 F Static budget variance, $4,000 F *Budgeted sale price is $12,000 per pool, budgeted variable expense is $8,000 per pool, and budgeted total monthly fixed expenses are $20,000. Print Done