Complete the performance report shown in S10-3 by filling in all missing values. Be sure to label each variance as favourable (F) or unfavourable (U). Then, answer the following questions:
In Short exercise

1. What was the total static budget variance?
2. What was the total sales volume variance?
3. What was the total flexible budget variance?
4. Show that the total sales volume variance and total flexible budget variance sum to the total static budget variance.
5. Interpret the variances and then give one plausible explanation for the variances shown in this performance report.

SURF-SIDE POOLS Income Statement Performance Report Year Ended April 30 Flexible Budget Actual Resuslxiblfor A Sales Static at ActualBugNumber of Vol(Master) Prices Viance Output UnitsVariance Budget Output units (pools installedy Sales revenue Variable expenses Fixed expenses Total expenses Operating income $90,000 50,000 25,000 75,000 $15,000 $108,000 $102,000 57,000 21,000 78,000 S 24,000 60,000 25,000 85,000 $23,000