U. I UW TICTy povis 13 LICHICAIVIC Vuuyou wascu VII! VIT! The flexible budget for performance reports is always based on the that managers can compare actual output for the month. This is done so meaning they can compare to Therefore, Surf Side'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. 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? and the Since the v and the V are based on of output, this variance highlights As the name suggests, the flexible budget variance is the difference between the 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 V. The only difference between these two budgets is the Therefore, the volume variance is caused by differences between 1 Data table A B D E F 1 Surf Side 2 3 Flexible Budget Performance Report: Sales and Operating Expenses For the Year Ended April 30 Flexible Budget Flexible Volume Actual Variance Budget Variance Master Budget 4 5 Sales volume (number of pools installed) 5 ? ? ? 4 6 Sales revenue $ 120,000 ? $ 125,000 2 $ 100,000 7 Operating expenses 8 Variable expenses $ 55,000 ? $ 61,000 ? $ 48,800 9 Fixed expenses 22,000 ? 25,800 ? 25,800 10 Total operating expenses