Sun Flower Hotel in Washington prepare the Budget for the first quarter of 2018. Data concerning the companys operations in August appear below: Budget Actual Budget Budget Results for Rooms Rent ............................ 300 350 Revenue ($ 200) ............................. $ 60,000 $ 74,000 Variable Expenses: Wages and salaries .............. 18,000 19,400 Facility Supports .............................................. 6,000 6,800 Power .............................. 3,000 4,000 Fixed Expenses: Depreciation on Facilities Depreciation on Building .............................. 4,500 4,500 Office expenses ..................... 12,000 13,000 Total expense ................................................... 43,500 47,700 Net operating income ....................................... $ 16,500 $ 26,300 Required: 1. Prepare a exible budget and performance report for first quarter of 2018 2. Which of the variances should be of concern to management? Explain