1. What is the flex budget variance for operating income?
2. What is the volume variance for operating income?
3. What do the flex budget variance and volume variance for operating income sum to?Does this equal the total master budget varianceYes or No? Should it always sum (or net) to the total master budget variance, even if one is U and one is F?Yes or No?
4. How much of the master budget variance for Sales was caused by an UNANTICIPATED increase in volume?
5. How much of the master budget variance for Commission Expense was caused by an UNANTICIPATED increase in volume?
6. How much of the master budget variance for Advertising Expense was caused by an UNANTICIPATED increase in volume?
7. How much of the master budget variance for CGS was caused by some factor OTHER THAN volume?
8. What could account for this variance?
9. How much of the master budget variance for Sales Revenue was caused by some factor OTHER THAN volume?
10. What could account for this variance?
11. How much of the master budget variance for Advertising Expense was caused by some factor OTHER THAN volume?
12. What could account for this variance?

Kelsey's Frozen Confectionaries Fexible Budget Performance Report For the month ended June 30 Flexible Budget ACTUAL Variance FLEXIBLE BUDGET Sales Volume Variance MASTER BUDGET Volume (in cases) 21,460 $ 21,460 1,460 20,000 $ Sales Revenue $ 1,131,020 $ 58,020.00 1,073,000 $ 73,000.00 $1,000,000.00 Less Variable Expenses: $ Cost of Goods Sold Sales Commissions $ 682,880 $ 58,685 $ 39,080.00 $ 643,800.00 $ 43,800.00 $ 600,000.00 5,035.00 $ 53,650.00 $ 3,650.00 $ 50,000.00 Shipping Expense 44,213 $ 1,293.00 $ Bad debt expense 16,930 $ 7,273.00 $ Contribution Margin 328,312 $ 42,920.00 $ 2,920.00 $ 9,657.00 $ 657.00 $ 5,339.00 $ 322,973.00 $ 21,973.00 $ 40,000.00 9,000.00 301,000.00 Less Fixed Expenses: $ Salaries 43,000 $ 3,000.00 $ 40,000 $ - $ 40,000 Lease on Distn center $ 15,500 $ (1,500.00) $ 17,000 $ - 17,000 Deprec. on fleet/equip 12,000 $ - $ 12,000 $ - 12,000 Advertising 7,750 $ (2,250.00) $ 10,000 $ - 10,000 Office rent, phone, net $ 12,300 $ 1,300.00 $ 11,000 $ - 11,000 Operating Income 237,762 $ q 4,789.00 $ 232,973 $ 21,973.00 $ 211,000