A) comment on the manager's performance

b) explain why flexible budgets are useful

Question 28 (5 points) The following static and flexible budget report was prepared for the sales manager of ACME Corporation for the first quarter of 2022: Static Budget (10,000 units) Budget Actual $ 1,500,000 $ 1,800,000 $ Variance 300,000 F Sales Variable costs: Commissions (15% of sales) Advertising (20% of sales) Travel (10% of sales) U U 225,000 300,000 150,000 675,000 265,000 350,000 175,000 790,000 40,000 50,000 25,000 115,000 U U Fixed costs: Sales salaries Administrative salaries 15.000 U 120,000 135,000 75,000 75,000 195,000 210,000 870,000 $1,000,000 $ U Total costs $ 15,000 130,000 U F Flexible Budget (Actual sales 12,000 units) Budget Actual Variance Sales $ 1,800,000 $1,800,000 $ Variable costs: Commissions (15% of sales) 270,000 265,000 5,000 Advertising (20% of sales) 360,000 350,000 10,000 F Travel (10% of sales) 180,000 175,000 5,000 F 810,000 790,000 20,000 F Fixed costs: Sales salaries 120,000 135,000 15,000 U Administrative salaries 75,000 75,000 195,000 210,000 15,000 U Total costs $ 1,005,000 $1,000,000 $ 5,000 Required: Assuming the sales manager has control over sales and selling costs. a) Comment on the manager's performance. (3 marks) b) Explain why flexible budgets are useful. (2 marks)