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Flexible Budgets, Direct-Cost Variances, and Management Control Question 2 a. Using an example, explain the concept of a flexible budget, flexible budget variances and sales volume variances. (3 marks) 2b. Hasan Table Company manufactures tables for schools. The 2018 operating budget is based on sales of 45,000 units at 55 Taka per table. Operating income is anticipated to be 240,000 Taka. Budgeted variable costs are 35 Taka per unit, while fixed costs total 660,000 Taka. Actual income for 2018 was a surprising 569,000 Taka on actual sales of 46,000 units at 60 Taka each. Actual variable costs were 34 Taka per unit and fixed costs totaled 627,000 Taka. Required: Prepare a variance analysis report with both flexible-budget and sales-volume variances. (7 marks)