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The Mobile Phone Shop operates mobile phone repair stores throughout Saskatchewan and Manitoba. They saw improved performance in the volume of repairs in the month

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The Mobile Phone Shop operates mobile phone repair stores throughout Saskatchewan and Manitoba. They saw improved performance in the volume of repairs in the month of May 2021, and completed far more repairs than were initially budgeted for. The Mobile Phone Shop is now preparing their May 2021 financial statements. Their ChiefAccountant, Tony Bell, includes variance analysis comparing actual to budgeted results. He has asked for your help in analyzing the nancial statements and would like to know whether or not the company performed as strongly as initially expected. NOTE: You must ll in the last THREE digits of actual results based on your student number. For example, if your Student Number is T123456, then the actual number of units will be 2,456. The Mobile Phone Shop Actual-to-Budget Comparison For the month ended May 31, 2021 Bud et Actual Budget _ g Variance Repairs processed during the month 3,XXX 2,500 500 F NOTE: Update the Actual Tests for your Student ID. For example, if your Student ID is 123456, the actual number of tests would be 2,456. Variable Costs: Cell phone testing equipment $ 7,375 $ 9,430 $ (2,055) U Cell phone repair parts 18,220 16,500 1,720 U Direct labour for repair technicians 22,785 25,900 (3,115) U Shipment costs to return repairs to customers 4,790 5,650 (860) F Total variable costs 53,170 57,480 (4,310) U Fixed Costs: Store manager and supervisor salaries $ 25,000 $ 27,900 $ (2,900) F Depreciation expense on store fixtures 5,850 5,450 400 U Store lease and rental expense 28,490 26,000 2,490 U Utilities, telephone and internet expense 845 700 145 U Total xed costs 60,185 60,050 135 U Total Expenses $ 113,355 $ 117,530 $ (4,175) U Required: a) Prepare an updated monthly report for May, showing the results with a flexible budget. Be sure to indicate whether your variances are Favourable or Unfavourable. You do not need revenues in order to complete this question. (30 Marks) b) Based on your exible budget results, which ve (5) variances should be investigated further. Why? Support your decision with an explanation

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