Requirements 4 anu u. Lompule me mastel puugel vallances. De sure to Micale each vallanice as lavoravie (T) or unavoravie (V.) vianagement would like to determine the portion UI the master puugel variance ulat is (a) uue lo volume penny different than originally anticipated, and (b) due to some other unexpected cause. Prepare a flexible budget performance report to address these questions, using the actual sales volume of 57,500 units and the budgeted sales volume of 54,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 49,000 to 67,500 units. Begin by completing the actual and master budget columns of the performance report and then the master budget variances. Then compute the flexible budget column and the remaining variance columns. (Round all amounts to the nearest whole dollar. For accounts with a 0 balance, make sure to enter "0" in the appropriate column. Label each variance as favorable (F) or unfavorable (U).) The Precious Balloon Company Flexible Budget Performance Report For the Month Ended May 31 Flexible Master Budget Flexible Volume Master Budget Actual Variance Budget Variance Budget Variance 57500 OF 57500 3500 3500F Sales volume Sales revenue 54000 167400 81000 190400 94000 23000 13000 Less: Variable expenses Contribution margin 96400 86400 10000F 1800 u 64800 Less: Fixed expenses 63000 31600 23400 8200 FT Operatina income Requirement 6a. Using the flexible budget performance report you prepared for Requirement 5, answer the following question: How much of the master budget variance (calculated in Requirement 4) for operating income is due to volume being higher than expected? The amount of the master budget variance for operating income due to volume being higher than expected is $ . Requirement 6b. Using the flexible budget performance report you prepared for Requirement 5, answer the following question: How much of the master budget variance for variable expenses is due to some cause other than volume? The amount of the master budget variance for variable expenses due to some cause other than volume is $ | Requirement 6c. Using the flexible budget performance report you prepared for Requirement 5, answer the following question: What could account for the flexible budget variance for sales revenue? V could account for the flexible budget variance for sales revenue. Requirement 6d. Using the flexible budget performance report you prepared for Requirement 5, answer the following question: What is the volume variance for fixed expenses? Why is it this amount? (Enter a "0" for any zero amounts.) because the flexible budget uses the amount for fixed The volume variance for fixed expenses is $ expenses because fixed expenses are Iti-pack cases. To follow is the company's performance report in contribution margin format for Ma ma Data Table The Precious Balloon Company Actual vs. Budget Performance Report For the Month Ended May 31 pce (cal Master Master Budget am Actual Budget Variance Sales volume (number of cases sold) 57,500 hce for 54,000 Sales revenue $ 190,400 $ 94,000 167,400 81,000 Less: Variable expenses Hget va Contribution margin $ 96,400 $ 64,800 86,400 63,000 Less: Fixed expenses -df $ 31,600 $ 23,400 expens Operating income Print Done ontinue to the next