The Basile Company has just completed their 2020 fiscal year.The budgeted Operating Income was $279,750 and the actual Operating Income was a LOSS of -$9,425. The CFO is very disappointed at the results so she would like to understand the reasons why the company was so far off budget.Therefore, she has provided you with the Actual vs. Budget Data (see tab) and would like you to Flexible Budget with Spending and Volume variances for the year ended December 31, 2020 (a spreadsheet/tab has been provided, see below).Prepare the flexible budget in good form using the same formats used in the solutions for Day 18 problem.All formats should be followed such as dollar signs, decimal places, underscores, etc.

question Analyze the variances from the flexible budget and identify issues that management should be concerned about.You only need to highlight variances that are a concern.