Please answer part B using information from part A.

please answer all the questions 6-9

Objective 1-Prepare flewibfe badieta Objective 2 L Leam to explain the activiry and revenue/spendins variancer Lama iasaseratce Larry's tarwn Service provides tawo care in s planned community where ail fawns are acprosimately the saine she. At the end of May. Larry prepared his June budget based en nowing 500 iswns. Since all of the tawns are simblir in uize. tarry felt that the number of lawns mowed in a month would be the best way to messure overall activity for Nas business. vi. Guestions 1. What are faed expenies? What are vartable expenes? office rent, untilites. Workible: Cos,'suppics, mourferienae. 2. What is the planned net income? What is the actual income? Pikunnes is 5,0p0 ficfeal. H6,FSO 3. Why is there a difference? Gat: wert jo DS. To knowia F F Favorable variance that occurs when actual revenue is greater than budgeted revenue Oh wiben actual costs are less than budgeted costs. U= Unfavorable variance that occurs when actual costs are greater than budgeted costs: a. A flenible bud pet Questions 6 Prepare a flexible budget if 550 lawns are mowed - in other words, If following the plan, but only the activity level is different ( 550 vs. 500 lawns), then what is the net operating intorme? 7 Prepare a flexible budget if 400 lawns are actually mowed. (See last page.) C. Use the flexible budget to computa ACTIVITY varlances: only because of the difference between 550vs. 500 Questions 8. Because 550 thuns are cared instead of 500 , revenue increase by? 9. Because 550 lawns are cared instead of 500 , costa/expenses increase by