You are the budget expert for M&C Manufacturing Company. The Master Budget and Actual Results for 2013 are listed below. Your general manger, however, wants a comparison based more closely on activity levels. You then develop a comparison with variances at the actual level of sales. Master Budget Actual Amounts Variance Fav/Unfav 98,000 82,000 16,000 U $1,960,000 $1,640,000 320,000 U $980,000 Units Sales Variable costs: Cost of Goods Sold Sales Commissions Shipping Cost Total variable costs Contribution Margin Fixed costs: Salary Exp Depr Exp Rent Exp Total fixed costs Operating Revenue $107,800 $53,900 $1,141,700 $818,300 $775,000 $77,500 $43.000 $895,500 $744,500 205,000 30,300 10.900 246,200 73,800 F F U $300,000 $214,000 $175,750 $300,000 $214,000 $175,750 $689,750 $54,750 $689,750 $128,550 73,800 U Which, if any, of the flexible budget variances should be investigated if using a 6% variance benchmark? **Required answer in following format** Master Budget 98,000 $1,960,000 Actual Amounts 82,000 $1,640,000 Variance 16,000 320,000 Fav/Unfav U Units Sales Variable costs: Cost of Goods Sold Sales Commissions Shipping Cost Total variable costs Contribution Margin Fixed costs: Salary Exp Depr Exp Rent Exp Total fixed costs Operating Revenue $980,000 $107,800 $53,900 $1,141,700 $818,300 $775,000 $77,500 $43,000 $895,500 $744,500 205,000 30,300 10,900 246,200 73,800 $300,000 $214,000 $175,750 $689,750 $128,550 $300,000 $214,000 $175,750 $689,750 $54,750 73,800 U FLEXIBLE BUDGET AT ACTUAL SALES ACTIVITY LEVEL Budget Formula Flexible Budget Units Actual Variance Fav/Unfav % of Variance Investigate ?! Sales Variable costs: Cost of Goods Sold Sales Commissions Shipping Cost Total variable costs Contribution Margin Fixed costs: Salary Exp Depr Exp Rent Exp Total fixed costs Operating Revenue Benchmark=6%