Zayed car wash experienced the following revenue and expenses for the month of January 2022. The car wash had an initially expected customer as 3,500 customers and, fortunately, the customers increased to 4,200. The revenue charge to wash each car is 30, AED.

The expenses incurred are as follows: Soap 0.5; water 1; foam1.5; Fixed cost rental 25,000; Overhead fixed 8,000; wages variable 0.5

a. Compute the actual budget

b. Compute the flexible budget and find the variance

c. Compute the profit for both the actual, variance and the flexible budget

d. Indicate if the activity variances and the flexible budget are favourable or unfavorable