1. Prepare a new performance report for August using the flexible budget approach (Note Even though some of these costs might be classified as direct costs rather than overhead, the flexible budget approach can still be used to prepare a flexible budget performance report) (Indicate the effect of each variance by selecting "P" for favourable, "U" for unfavourable, and "None" for no effect (ke.. zero variance). Round "Cost Formula" answers to 2 decimal places) Matoika Marine Inc. has just finished its operations for August, which was a particularly busy month. They processed 24% more product than had been originally planned for the month. A report prepared by Management comparing actual costs to budgeted costs appears below. Budget 600 Variance 300 F Matoika Marine Cost Control Report For the Month Ended August 31 Actual Units Produced 900 Variable costs: Marine supplies $ 8,650 Emission tests 7,25e Other Variable 1,890 Administrative supplies 510 Total variable cost 18 EDO Fixed costs Staff salaries 10,500 Equipeent depreciation 3,900 Rent 1, ose utilities 680 Total fixed cost 10239 Total cost $34,430 $5,400 7,200 1,200 270 14.070 $ 3,250 u SOU 690 u 2480 4,230 UI 850 U 10,500 3,050 1,050 555 25155 529,225 225 U $5,205 The managing director was very unhappy with this report, claiming that his costs were higher than expected. He also pointed out that the additional costs had been fully covered by payments from suppliers. The accountant who prepared the report pointed out that actual costs were a lot higher than promised in the budget Required: 1. Prepare a new performance report for August using the flexible budget approach (Note: Even though some of these costs might be classified as direct costs rather than overhead, the flexible budget approach can still be used to prepare a flexible budget performance report) (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e.. zero variance). Round "Cost Formulo" answers to 2 decimal places) Matoika Marine Flexible Budget Performance Report For The Month Ended August 31 Actual Spending or Budget Variance Flexible Budget Static Budget Cost Formula Activity Level (units) (Per unit) 900 900 600 Vanable costs Marine supplies Emmission tests Other variable Expenses Administrative supplies Total variable cost Fixed costs Staff salaries Equipment depreciation Rent Uties Total fed cost Total cost