Time 2 Kool installed eleven pools during March. Prepare an income statement performance report for Time 2 Kool for March, using the table below as a guide. E: (Click the icon to view the table.) Assume that the actual sales price per pool is $13,400, actual variable expenses total $62,500, and actual fixed expenses are $19,500 in March. The master budget was prepared with the following assumptions: variable cost of $8,200 per pool, fixed expenses of $20,200 per month, and anticipated sales volume of ten pools at $13,400 per pool. Requirement 1. Compute the sales volume variance and flexible budget variance. Use these variances to explain to Time 2 Kool's management why March's operating income differs from operating income shown in the static budget .... Requirement 1. Compute the sales volume variance and flexible budget variance. Use these variances to explain to Time 2 Kool's management why March's operating income differs from operating income shown in the static budget. Prepare an income statement report for Time 2 Kool for March. (For accounts with a zero balance, make sure to enter "O" in the appropriate column. Label each variance as favourable (F) or unfavourable (U). If the variance is zero, do not select a label.) Time 2 Kool Pools Income Statement Performance Report Month Ended March 31 Flexible Budget for Actual Results at Sales Volume Flexible Budget Variance Actual Number of Output Units Static (Master) Budget Actual Prices Variance 10 Output units Sales revenue Variable expenses Fixed expenses Total expenses Operating income Use the sales volume variance and flexible budget variance to explain to Time 2 Kool's management why March's operating income differs from operating income shown in the static budget. Time 2 Kool's actual operating income was $ V the static budget. There are two primary reasons: 1. Time 2 Kool actually installed pool than expected. This operating income by $ V than they should have been to install 11 pools. This V flexible budget variance means that Time 2 Kool did a 2. Time 2 Kool's actual expenses to install 11 pools were $ job controlling cost. Data Table Time 2 Kool Pools Income Statement Performance Report Month Ended June 30 (1) (5) (2) (1)-(3) (3) Flexible (4) (3)-(5) Flexible Sales Static Actual Results at Actual Prices 10 Budget Variance -0- Budget for Actual Number of Output Units* 10 Volume Variance 2 F (Master) Budget 8 Output units (pools installed) Sales revenue Variable expenses Fixed expenses Total expenses $121,000 83,000 22,000 $1,000 F 3,000 U 2,000 UI $120,000 80,000 20,000 $24,000 F 16,000 UI -0- $96,000 64,000 20,000 84,000 $12,000 105,000 5,000 U 100,000 16,000 U $ 16,000 Operating income $4,000 U $ 20,000 $8,000 F Flexible budget variance, $4,000 U Sales volume variance, $8,000 F Static budget variance, $4,000 F Budgeted sale price is $12,000 per pool, budgeted variable expense is $8,000 per pool, and budgeted total monthly fixed expenses are $20,000