Scenario: The Redmond Management Association held its annual public relations luncheon in April Year $2.$ Based on the previous year$$s results, the organization allocated $$25,290$ of its operating budget to cover the cost of the luncheon. To ensure that costs would be appropriately controlled, you, the treasurer, prepared the following budget for the Year $2$ luncheon.

Use Excel$$showing all work and formulas$$to complete the following:

Prepare a flexible budget.

Compute the sales volume variance and the variable cost volume variances based on a comparison between the master budget and the flexible budget.

Compute flexible budget variances by comparing the flexible budget with the actual results.