Flexible Budgets and Standard Cost Systems Using Excel to prepare a flexible budget performance report Pilchuck Company manufactures tote bags and has provided the following information for September 2018: Actual Results Static Budget Units Sales Revenue 14,000 15,000 560,000 540,000 Variable Costs 294,000 262,500 Contribution Margin 266,000 277,500 Fixed Costs 109,000 122,000 Operating Income 157,000 155,500 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong. Requirements 1 Prepare a flexible budget performance report, including the heading. Use the ABS function when calculating variances, and use the drop-down selections for F or U when describing the variances. 2 Calculate the Static Budget Variance for operating income, and label it as a F (favorable) or U (unfavorable) variance. Excel Skills 1 ABS function (Absolute Value) to calculate the variances. 2 Data validation to select a F (favorable) or U (unfavorable) variance 3 Cell references - both absolute and relative Requirement 1 Prepare a flexible budget performance report, including the heading. Use the ABS function when calculating variances, and use the drop-down selections for F or U when describing the variances. Note: start with calculating the budget amounts, then calculate variances and choose appropriate descriptions of the variances. (For variances with a zero amount, make sure to include the result of "0" in the appropriate cell and leave the drop-down to identify the variance as either For U blank.) (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.) Column 1 Budget Amounts per Unit Actual Results Column 2 Col (1) - Col (3) Flexible Budget Variance Column 3 Column 4 Col (3)-Col (5) Column 5 For U Flexible Budget Sales Volume Variance For U Static Budget Units Requirement 2 Calculate the Static Budget Variance for operating income, and label it as a F (favorable) or U (unfavorable) variance. (Always use cell references and formulas where appropriate to receive full credit.) Static Budget Variance for Operating Income (1) - (5) Amount: For U