The fixed budget performance report for the year ended 30 June 2018 for Motueka Mint is as follows:

	Budget				Actual				Variance
Units of production:		84 000				94 000				10 000	F
Factory overhead: Variable costs: Indirect labour Factory supplies Repairs and maintenance	$	193 200 134 400   67 200			$	216 200 178 600   112 800			$	23 000 44 200   45 600	U U U
Total variable overhead		394 800				507 600				112 800	U
Fixed costs: Factory insurance Utilities Depreciation Management salaries		12 000 18 600 14 500   86 000				13 500 24 000 13 800   92 000				1 500 5 400 700   6 000	U U F U
Total fixed overhead		131 100				143 300				12 200	U
Total factory overhead	$	525 900			$	650 900			$	125 000	U

Required

A. Convert the fixed budget performance report prepared by Motueka Mint to a flexible budget performance report.

B. Why does a report based on a flexible budget provide a better means of evaluating performance as opposed to a fixed budget?