Review the slides for Chapter 15 (as well as relevant text material as needed, and any other research you need to do). Then complete the following. 1. Why would a company use static and flexible budgets? 2. Complete the following chart. Using any 2 items, what observation can you make about this company? Compute variances for the items shown in the following list and indicate whether each variance is favorable (F) or unfavorable (UF). Item Selling and Administrative Expenses Budget $ 29,000 Actual $27,000 Variance For UF Sales Revenue $310,000 $325,000 Materials Price $2.00 per Ib $2.10 per lb. Cost of Goods Sold $125,000 $100,000 Materials Purchases $250,000 $265,000 Materials Usage 6,000 lbs. 5,800 lbs. Sales Price $550 each $500 each Labor Rate $8.10 per hour $7.95 per hour Production Volume 950 units 900 units Labor Usage $96,000 Research and Development Expense $22,000 $97,000 $25,000