hello, can you please explain with formulas and step by step how to do these questions thank you!

Vroom-Vroom manufactures ride-on cars for toddlers and young children. They have a fiscal year of January through December. When they were preparing their budget, they couldn't decide if a static or flexible budget would be best for their company - so they did both. It is now March, and their accounting department is catching up on analyzing variances for both January and February. Vroom-Vroom would like to use this opportunity to determine whether they would be better off with a static or flexible budget going forward. They want to choose which budget and related variance analysis provides them the best information for decision-making.

Here is the data that Vroom-Vroom used for their budgets:

Monthly budget data

Selling price per unit-$79 per each

Raw materials cost-$32 per each

Packaging cost-$16 per each

Electricity-$5 per each

Waste and other cost-$7 per each

Salary and wages cost-$580,000 per month

Fringe benefits-50% of salaries

Rent cost-$950,000 per month

Insurance cost-$60,000 per month

Depreciation cost-$370,000 per month

Vroom-Vroom estimated sales/production will be between 100,000 and 300,000 cars per month. Their static budget is based on 200,000 cars sold per month. Assume that all units produced in a month are also sold in that month. Vroom-Vroom's unit of production/sale is a car (unit/each).

Here are the Actual Results in January and February:

Actual data:

Production (units)

JAN-245,000

FEB- 187,000

Revenue

JAN-$19,345,000

FEB- $14,888,000

Raw materials

JAN-$7,545,000

FEB- $5,796,000

Packaging materials

JAN- $3,928,000

FEB- $2,997,000

Electricity

JAN- $1,175,000

FEB- $842,000

Waste and other costs

JAN- $1,837,000

FEB- $1,442,000

Wages

JAN- $575,000

FEB- $585,000

Fringe benefits

JAN- $287,000

FEB- $292,500

Rent

JAN- $950,000

FEB- $950,000

Insurance

JAN- $60,000

FEB- $65,000

Depreciation

JAN- $370,000

FEB- $340,000

static budget in Excel for Vroom-Vroom based on 200,000 units produced.

1.For Raw Material Costs and Packaging Costs, break out the Price and Volume Variances for January. Provide potential explanations for each one. Note: Saying that an item was above or below budget is NOT an explanation. You need to include potential (made-up) reasons.

2.For Raw Material Costs and Packaging Costs, break out the Price and Volume Variances for February. Provide potential explanations for each one. Note: Saying that an item was above or below budget is NOT an explanation. You need to include potential (made-up) reasons.

flexible budget in Excel for Vroom-Vroom.

3)For Raw Material Costs and Packaging Costs, break out the Price and Volume Variances for January. Provide potential explanations. Note: Saying that an item was above or below budget is NOT an explanation. You need to include potential (made-up) reasons.

4)For Raw Material Costs and Packaging Costs, break out the Price and Volume Variances for February. Provide potential explanations for each one. Note: Saying that an item was above or below budget is NOT an explanation. You need to include potential (made-up) reasons.