Wendy Rose, the CFO of the company said "This is unacceptable! The spending in this

company is out of control!"

Required:

Is Wendy able to evaluate the performance of the company based only on the report above? Why or why not?

Prepare a revised report using a flexible budget and calculate revised variances based on the flexible budget.

Make sure you indicate whether the variances are favorable or unfavorable.

Comment on Wendy's assertion that "spending" is out of control.The following costs are incurred by the Cleveland Company, a manufacturer of furniture.

Classify each cost as Variable $($V$)$ or Fixed $($F$).$