Requirement #2 Write a one page letter summarizing: 1. What the variances mean, and 2. What conclusion do you draw from the variances? Actual Cost Example: 5 840,000 Flexible Budget (Applied Templates Direct Materials Actual Input Quantity x Budgeted (Sid) Price Purchases Usage $781,750 $724,775 $ 795,000 $ 58,250 UNF Price Variance $ 70.225 FAV Efficiency Variance NOTE: There is NO "Total variance because Price & Efficiency Variances are measured at different times for DM Actual Cost Direct Labor Actual Input Quantity x Budgeted (Sid) Rate Flexible Budget (Applied) $ 5,600,000 $5.851,750 $6,621,600 $ 769,850 FAV Efficiency Variance $ 251,750 FAV Price Variance $1,021,600 FAV Flexible Budget (TOTAL) Variance Actual Cost Incurred Variable Manufacturing Overhead Actual Input Quantity x Budgeted (Std) Rate Flexible Budget (Applied Allocated $ 665,000 $ 591,750 $ 669,600 $ 669,600 $ 73,250 UNF $77.850 FAV Spending Variance Efficiency Varience $ 4,600 FAV Flexible Budget (TOTAL) Variance Actual Cost Incurred Fixed Manufacturing Overhead Flexible Budget Static FOH Budget (Same as Static) Allocated $ 1,488,000 $ 1.250.000 $1.250,000 $1,363,636 $ 238,000 UN Spending Variance $ 113,636 FAV Production Volume Variance $ 124,364 UNF TOTAL Fixed OH Variance Can you please help me with answering Requirement #2 using the numbers above and explaining what everything means