Suppose actual gas sales were 30,000 gallons and actual results were as shown below. Using the...

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Suppose actual gas sales were 30,000 gallons and actual results were as shown below. Using the same assumptions as before, for each expense below compute: 1) the flexible budget; 2) activity variances; 3) cost variances. Planning Actual Assumption Budget Results Number of gallons (Q) 25,000 30,000 Revenue $4Q $100,000 $125,000 Expenses: Fuel $2Q $ 50,000 $ 65,000 Labor $0.4Q 10,000 Administrative $20,000 20,000 Total expenses Net operating income 80,000 $ 20,000 15,000 22,000 102,000 $ 23,000 Suppose actual gas sales were 30,000 gallons and actual results were as shown below. Using the same assumptions as before, for each expense below compute: 1) the flexible budget; 2) activity variances; 3) cost variances. Planning Actual Assumption Budget Results Number of gallons (Q) 25,000 30,000 Revenue $4Q $100,000 $125,000 Expenses: Fuel $2Q $ 50,000 $ 65,000 Labor $0.4Q 10,000 Administrative $20,000 20,000 Total expenses Net operating income 80,000 $ 20,000 15,000 22,000 102,000 $ 23,000