Static Budget 20,000 $400,000 Actual Results 19,000 $ 380,000 Sales Variable Costs DM DL VOH Total VCOGS Var Sell & Admin Exp Total Variable Costs Contribution Margin Fixed Costs FOH Fixed Sell & Admin Total Fixed Costs Operating Income $ 40,000 120,000 20,000 $ 180,000 40,000 $ 220,000 $ 180,000 $ 47,500 109,250 23,750 $ 180,500 28,500 $ 209,000 $ 171,000 $ 75,000 100,000 $175,000 $ 5,000 $ 75,000 95,000 $ 170,000 $ 1,000 Required: Compute the "flex budget" and then calculate your variances based on the flex budget to actual comparison. Indicate which variances you would investigate if the policy is to investigate any variance greater than $3,000 or 3.5% of the flex budget