Requirement 2. What accounts for most of the difference between actual operating income and static budget operating income? for operating income is larger than the V. Most of the difference between static budget operating income and actual operating income resulted from The bubble kits than expected Requirement 3. What is Great Bubbles' static budget variance? Explain why the income statement performance report provides Great Bubbles' managers with more useful information than the simple static budget variance. What insights can Great Bubbles' managers draw from this performance report? Great Bubbles' static budget variance is $ | meaning that its operating income is than expected per the static budget. Choose two explanations why the income statement performance report provides Great Bubbles' managers with more information than the simple static budget variance. These variances suggest that the marketing department did a job by selling kits than expected, at a sale price than expected. Great Bubbles, Inc., produces multicoloured bubble solution used for weddings and other events. The company's flexible budget income statement for July follows. It is based on expected sales volume of 65,000 bubble kits. (Click the icon to view the flexible budget income statement.) The company sold 70,000 bubble kits during July, and its actual operating income was as follows: (Click the icon to view the actual income statement.) Requirements Requirement 1. Prepare an income statement performance report for July. Base your calculations on expected sales volume of 65,000 bubble kits. (Enter results as positive numbers. For accounts with a zero balance, make sure to enter "O" in the appropriate column. Label each variance as favourable (F) or unfavourable (U) unless the variance is zero, then do not select a label.) Great Bubbles, Inc. Data Table Data Table Income Statement Performance Report Month Ended July 31 Great Bubbles, Inc. Actual Results at Actual Prices Static (Master) Flexible Budget for Actual Number of Output Units Flexible Budget Variance Sales Volume Variance Income Statement Month Ended July 31 Budget $ Sales revenue Output units 209,500 Sales revenue $ Variable expenses: Cost of goods sold Sales commissions expense 88,300 21,500 3,500 Variable expenses Cost of goods sold Sales commissions Utilities expense Fixed expenses Salary expense Depreciation expense Rent expense Utilities expense Great Bubbles, Inc. Flexible Budget Income Statement Month Ended July 31 Flexible Budget per Output Unit Output Units (Kits) 65,000 70,000 75,000 $ $ 2.90 188,500 $ Sales revenue 203,000 $ 217,500 Variable expenses: Cost of goods sold 1.25 81,250 87,500 93,750 Sales commissions 0.30 19,500 21,000 22,500 Utilities expense 0.05 3,250 3,500 3,750 Fixed expenses: Salary expense 30,000 30,000 33,000 Depreciation expense 20,000 20,000 23,000 Rent expense 8,000 8,000 12,000 Utilities expense 6,000 6,000 6,000 Total expenses 176,000 168,000 194,000 Operating income 20,500 $ 27,000 $ 23,500 Fixed expenses: Salary expense Depreciation expense 32,300 20,000 7,550 6,000 179,150 30,350 Rent expense Utilities expense Utilities expense Total expenses Total expenses Operating income Operating income Print Done Requirement 2. What accounts for most of the difference between actual operating income and static budget operating income? Choose from any list or enter any number in the input fields and then continue to the next