Speedy Laboratories Inc. Actual-to-Budget Comparison Report For the month ended December 31, 2020 Actual Budget Budget Variance Tests conducted during the month 38XX 1,500 500 Variable Costs: Medical equipment $19,372 $12,680 $6,692 U Laboratory testing equipment 26,193 14,716 11,477 U Staff room supplies 2,785 1,733 1,052 U Office equipment 487 638 (151 ) F Total variable costs 48,837 29,767 19,070 U Fixed Costs: Employee wages and expenses $25,950 $25,950 $ --- Depreciation expense on medical 4,850 4,485 365 U equipment Office rent expense 3,275 3,275 - - - Utilities expense 682 589 93 U Total fixed costs 34,757 34,299 458 U Total Expenses $83,594 $64,066 $19,528 USpeedy Laboratories Inc. is a private medical laboratory headquartered in Vancouver, British Columbia. The lab has just wrapped up operations for the 2020 fiscal year, their last month of operations being December. The lab has been particularly busy due to the extra testing required due to the COVID-19 global pandemic. As a result, Speedy Laboratories processed 30% more samples from their clients that originally budgeted for. Speedy Laboratories is now preparing their December 2020 month-end results, including the report below which compares their actual costs to budgeted expenses.When the President of Speedy Laboratories, Dr. Anthony Fauci, reviews the monthly report, he is very disappointed. Costs have clearly increased due to the pandemic, and the company is also earning higher revenues due to the increased level of testing. You respond that you were simply reporting on the fact that the actual costs are higher than what was budgeted for. Required: a. Prepare an updated monthly report for December, showing the results with a flexible budget. Be sure to indicate whether your variances are Favourable or Unfavourable. (30 Marks) b. Based on your flexible budget results, which variances should be investigated further. Why? Support your decision with an explanation