The Rescuers, Ltd. operates a fleet of trucks which locate and/or respond to calls from disabled cars or accidents. Repairs are done at the location of the problem (80% of which are on the QEW). If damage is too severe, or the problem is such that it cannot be taken care of immediately, the drivers tow the car to a location chosen by the vehicle owner. The drivers of the trucks are considered independent contractors and are paid a set amount for each service incident that is completed on site (and nothing if they tow the vehicle, although they often receive tips from the vehicle owners and some repair shops offer kickbacks" to tow trucks that bring in business). The firm owns the trucks, and pays for all repairs and maintenance, including gas. Customers are charged a flat fee if towing is necessary, and various fees if repairs are conducted on site. The firm budgets carefully for each month. Gas and repairs are budgeted on the basis of kilometers driven. The static budget variances for September, 2020 were as follows: Budget 22,500 20,250 2,250 472,500 Actual 23,630 19,020 4,610 638,000 Variance 1,130F 1,230U 2,360U 165,500U Service Calls Completed on site Towed Kilometers driven Revenue (from repairs) $13,162,500 Revenue (from towing) Variable costs: $11,386,200 922,000 $1,776,300U 472,000F 450,000 56,700 911,250 2,632,500 69,200 890,600 2,472,600 Gas 12,500U 20,650F 159,900F Parts Payments to drivers Fixed costs Salaries 2,000U 82,000 950,000 80,000 950,000 Depreciation on trucks Required: 1. Prepare a flexible budget analysis for The Rescuers for the month of February. Be sure to include the activities levels.