The following is a partially completed performance report from Surf Time Pools, one of Kool Pool's competitors. (Click the icon to view the incomplete performance report.) Complete the performance report by filling in all missing values. Be sure to label each variance as favourable (F) or unfavourable (U). Then, answer the following questions: 1. What was the total static budget variance? 2. What was the total sales volume variance? 3. What was the total flexible budget variance? 4. Show that the total sales volume variance and total flexible budget variance sum to the total static budget variance. 5. Interpret the variances, and then give one plausible explanation for the variances shown in this performance report. Complete the performance report by filling in all missing values. Be sure to label each variance as favourable (F) or unfavourable (U). (Enter your answers as positive values. For a variance with a zero balance, make sure to enter "0" in the appropriate column. Label each variance as favourable (F) or unfavourable (U) unless the variance is zero, then do not select a label.) - X Surf Time Pools Incomplete performance report Income Statement Performance Report Year Ended April 30 Flexible Budget for Surf Time Pools Actual Results at Flexible Budget Actual Number of Sales Volume Static (Master) Income Statement Performance Report Actual Prices Variance Output Units Variance Budget Output units (pools Year Ended April 30 5 installed) Flexible Budget for $ 100,000 $ 106,000 $ 84,800 Actual Results at Flexible Budget Actual Number of Sales Volume | Static (Master) Sales revenue Actual Prices Variance Output Units Variance Budget Variable expenses 50,000 53,000 42,400 Output units (pools 5 ? ? ? 4 21,000 25,000 25,000 installed) Fixed expenses $ 100,000 ? $ 106,000 ? $ 84,800 71,000 78,000 67,400 Sales revenue Total expenses Variable expenses 50,000 53,000 42,400 $ 29,000 $ 28,000 $ 17,400 Operating income 21,000 25,000 25,000 Fixed expenses 1. What was the total static budget variance? 71,000 ? 78,000 ? 67,400 Total expenses $ 29,000 $ 28,000 ? 17,400 Operating income1. What was the total static budget variance? The static budget variance was $ 2. What was the total sales volume variance? The sales volume variance is $ 3. What was the total flexible budget variance? The flexible budget variance was $ 4. Show that the total sales volume variance and total flexible budget variance sum to the total static budget variance. $ sales volume variance + $ flexible budget variance = $ static budget variance. 5. Interpret the variances, and then give one plausible explanation for the variances shown in this performance report. Most of the static budget variance arose because Surf Time than it originally anticipated. We know this because of the $ sales volume variance. When we look at revenue and expense components of the flexible budget variance, we see that the company very good job of controlling expenses but did not achieve the that it anticipated. Management to investigateWhen we look at revenue and expense components of the exible budget variance, we see that the company these variances Perhaps the sales staff sold V that required V production inputs. very good job of controlling expenses but did not achieve the |:| that it anticipated Management to investigate The sales volume variance is $ V . 3. What was the tote/flexible budget variance? bought one more pool The exible budget variance was $ : . budgeted one more pool 4. Show that the total sales volume variance and total exibl itic budget variance. sold one less pool 3 'V sales volume variance + $ V exible budgr at variance. sold one more pool 5. Interpret the variances. and then give one plausible explar performance report. 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