was wondering whether she should implement the flexible budgeting system. The variable costs include direct materials $3 per unit, direct labour $17.50 per unit, and manufacturing overhead $6 per unit. The fixed costs include depreciation $250,000 and administrative $393,500. on Instructions (a) The CFO asks you to prepare a flexible budget for each of the possible production levels: 80,000, 95,000, and 110,000 units. (6 marks) (b) in addition, the CFO asks you to explain what the difference between ideal standards and normal standards is. (2 marks) Multiseal Paving & Waterproofing provides knowledge and expertise within a range of specialized divisions, focusing on high-rise building envelope, infrastructure, waterproofing, parking deck, restoration and decorative improvements. The company uses flexible budget to control its administrative expenses. The variable admin costs and their relation to the sales are printing 1.5%, order processing 5%, and freight 4%. The monthly fixed admin expenses include supervisor salary $6,000, office rent $3,400 and insurance $800. Monthly sales are expected to range from $125,000 to $150,000 In July 2019, the actual sales were $140,000 and the actual administrative expenses were as follows: printing $2,450, order processing $7,000, and freight $6,200. In addition, the fixed administrative costs were supervisor salary $6,150, office rent $3,500 and insurance $750. Instructions Prepare a flexible budget performance report by using the above information