hello, can you please explain with formulas and step by step how to do these questions thank you! I just need help with C, F,I,L I do not understand how to find price and volume variances.

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

Question 1:Make a static budget in Excel for Vroom-Vroom based on 200,000 units produced.

a)Show the static budget for January in Contribution Margin Income Statement format.

b)Compare January's static budget to January's actual results. Specify which line items are favorable or unfavorable and how much.

c)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.

d)Show the static budget for February in Contribution Margin Income Statement format.

e)Compare February's static budget to February's actual results. Specify which line items are favorable or unfavorable and how much.

f)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.

Question 2:Make a flexible budget in Excel for Vroom-Vroom.

g)Show the flexible budget for January in Contribution Margin Income Statement format.

h)Compare January's flexible budget to January's actual results. Specify which line items are favorable or unfavorable and how much.

i)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.

j)Show the flexible budget for February in Contribution Margin Income Statement format.

k)Compare February's flexible budget to February's actual results. Specify which line items are favorable or unfavorable and how much.

l)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.