The annual budget was constructed based on the following assumptions: 1. 25 automobiles in the podl 2.60,000 kilometers per year per automobile 3. 8 kilometers per liter of petrol for each automobile 4. .44 per liter of petrol 5. .02 per kilometer for oil, minor repairs, parts, and supplies 6. 108 per automobile in outside repairs The supervisor is unhappy with the monthly report comparing budget and actual costs for March- she claims it presents her performance unfairly. Her previous employer used flexible budgeting to compare actual costs with budgeted amounts 1. Employing flexible-budgeting techniques, prepare a report that shows budgeted amounts, actual costs, and monthly variation for March. 2. Explain briefly the basis of your budget figure for outside repairs. the cost per mile. autmobiles CIIIN management , lmine i of the funds is recorded in the budget in order to schedule presents the annual budget approved by the news division. The actual ar compared with one-twelfth of the annual budget. he T com asts for nsts for March CNN London Motor Pool Budget Report for March 20X1 AnnualOne-Month March Budget BudgetActual 8,200 2,540 50 416 1,800 1,976 Over Petrol (gasoline) 0il, minor repairs, parts, and supplies Outside repairs Insurance Salaries and benefits Depreciation Total costs 6,875 2,500 225 400 1,800 1,900 ,40013,700 1,500,000125,000 .1096 .1096 25 82,500 30,000 2,700 4,800 21,600 22,800 (Under) 1,325 40 (175) 16 76 14,9821,282 140,000 f .1070 164, Total kilometers Cost per kilometer Number of automobiles 25 26 annual budget was constructed based on the following assumptions: . 25 automobiles in the pool he ear ner automobile