The Clarkson Company produces engine parts for car manufacturers. A new accountant intern at Clarkson has accidentally deleted the company's variance analysis calculations for the year ended December 31, 2017. The following table is what remains of the data.

Required
1. Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is $0.)
2. What are the actual and budgeted selling prices? What are the actual and budgeted variable costs per unit?
3. Review the variances you have calculated and discuss possible causes and potential problems. What is the important lesson learned here?

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Performance Report, Year Ended December 31,2017 Flexible-Budget Flexible Budget VariancesStatic Sales-Volume Actual Results Variances 130,00) 1000 1000 20,000) 140,000) 60000 120,000 S420,000 240,000 180,000 120,000 60,000 Units sold Revenues (sales Variable costs $715 Fixed costs income