The following is a partially completed performance report for Water Surf. (Click the icon to view the information.) Read the requirements 1. How many pools did Water Surf originally think they would install in April? The that Water Surf planned to sell 2. How many pools did Water Surf actually install in April? The pools in April. that Water Surf installed pools in April. 3. How many pools is the flexible budget based on? Why? The flexible budget for performance reports is always based on the that managers can compare output for the month. This is done so meaning they can compare to Therefore, Water Surf's flexible budget is based on pools. 4. What was the budgeted sales price per pool? (Round your answer to the nearest whole dollar.) The budgeted sales price is per pool. 4. What was the budgeted sales price per pool? (Round your answer to the nearest whole dollar.) The budgeted sales price is per pool. 5. What was the budgeted variable cost per pool? (Round your answer to the nearest whole dollar.) The budgeted variable cost is per pool. 6. Define the flexible budget variance. What causes it? As the name suggests, the flexible budget variance is the difference between the are based on and the . Since the and the of output, this variance highlights unexpected revenues and expenses that are caused by factors other than 7. Define the volume variance. What causes it? The volume variance is the difference between the and the The only difference between these two budgets is the Therefore, the volume variance is caused by differences between 8. Fill in the missing numbers in the performance report. Be sure to indicate whether variances are favorable (F) or unfavorable (U). (Enter the variances as positive numbers. Label each variance as favorable (F) or unfavorable (U). If the variance is 0, make sure to enter in a "0". A variance of zero is considered favorable.) Water Surf Flexible Budget Performance Report: Sales and Operating Expenses Output units (pools installed) For the Year Ended April 30 Flexible Budget Actual Variance 5 105,000 Sales revenue Operating expenses: Variable expenses 54,000 Fixed expenses 27,000 Total operating expenses Flexible Budget Volume Variance Master Budget $ 111,000 58,000 31,000 $ 88,800 46,400 31,000 Data table 2 A B C D E Water Surf Flexible Budget Performance Report: Sales and Operating Expenses For the Year Ended April 30 4 5 Sales volume (number of pools installed) 6 Sales revenue 7 Operating expenses: 8 6 Variable expenses Fixed expenses 10 Total operating expenses LL F Flexible Budget Actual Variance Flexible Volume Master Budget Variance Budget 5 ? ? ? 4 $ 105,000 ? $ 111,000 ? $ 88,800 $ 54,000 ? $ 58,000 ? $ 46,400 27,000 ? 31,000 ? 31,000