Please just do requirement 4 part 2

For Requirement 4 Part 1 - Please refer to E9-4 ,which is located on another tab in this file. You are going to plot the actual costs (given in the problem) against the flexible budget for the given level of activity against the flexible budget amount for the planned level of activity (13,200 units) You will then prepare a report just like the one in E9--4 ,where you show the SPENDING and ACTIVITY variances for everything from Revenue through to Net Income. Part 2 - These are all based on how you interpret the results from the report above. Therefore, there is no "right" answer and I will accept any answer once you justify it with your computational results. Revenue Variable costs Direct Materials Direct Labor Indirect Indirect materials Indirect Labor Utilities Maintenance Variable administrative salaries Variable sales commissons Total Variable Productions Cost Supervisor salaries Factory Depreciation Property taxes Insurance Maintainance Fixed Sales salaries Depreciation on sales equipment Advertising Total fixed costs Net income Actual Results 12900 237457 15200 580520 1305 2200 8900 1925 9702 14760 112402 43000 15500 4500 3500 1860 10000 12250 5720 96330 208373 29085 Revenue and spending variance 1193 U 4150 F 6450 U 15 U 265 U 130 F 10 F 27 U 75 F 2392 U 3000 U 0 0 300 U 60 U 5000 U 250 U 4280 F 4330 U 6722 U 7915 Flexible Budget 129000 238650 19350 51600 1290 1935 9030 1935 9675 14835 109650 40000 15500 4500 3200 1800 5000 12000 10000 92000 201650 37000 Activity Variance 5550 450 1200 30 45 210 45 225 345 2550 0 0 0 0 0 0 0 0 0 2550 3000 F F F F F F F Planning budget 13200 244200 19800 52800 1320 1980 9240 1980 9900 15180 112200 40000 15500 4500 3200 1800 5000 12000 10000 92000 204200 40000 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Actual 12,900 units Revenue and Actual Spending Results Variances 48 $13,650 Expected @ 12,900 units Flexible Budget $15,360 48 Flights (q) Revenue ($320.00q) Expenses: $1,710 U 8,430 494 U Wages and salaries ($4,000+82q) Fuel ($23.00q) 1,260 156 U 2,350 124 F Airport fees ($650 + $38.00q) Aircraft depreciation ($7.00q) Office expenses ($190 + $2.00q) 336 0 14 F 460 174 U 4 F Total expense 12,836 700 U 304 F Net operating income $814 $2.410 U $3,224 $336 U The overall $336 unfavorable activity variance is due to activity falling below what had been planned for the month. The $1,710 unfavorable revenue variance is very large relative to the company's net operating income and should be investigated. Was this due to discounts given or perhaps a lower average number of passengers per flight than usual? The $494 unfavorable spending variance for wages and salaries is also large and should be investigated. The other spending variances are relatively small, but are worth some management attention-particularly if they recur next month. 7,936 1,104 2,474 Activity Variances 336 286 12,136 $640 U 164 F 46 F 76 F Reference Problems E9-1 Flexible Budget Expected @ 13,200 unit Planning Budget 50 $16,000 8,100 1,150 2,550 350 290 12,440 $3,560 Sheet1 Use this problem a a template for Requirement 4. E9-4 For Requirement 4 Part 1 - Please refer to E9-4 ,which is located on another tab in this file. You are going to plot the actual costs (given in the problem) against the flexible budget for the given level of activity against the flexible budget amount for the planned level of activity (13,200 units) You will then prepare a report just like the one in E9--4 ,where you show the SPENDING and ACTIVITY variances for everything from Revenue through to Net Income. Part 2 - These are all based on how you interpret the results from the report above. Therefore, there is no "right" answer and I will accept any answer once you justify it with your computational results. Revenue Variable costs Direct Materials Direct Labor Indirect Indirect materials Indirect Labor Utilities Maintenance Variable administrative salaries Variable sales commissons Total Variable Productions Cost Supervisor salaries Factory Depreciation Property taxes Insurance Maintainance Fixed Sales salaries Depreciation on sales equipment Advertising Total fixed costs Net income Actual Results 12900 237457 15200 580520 1305 2200 8900 1925 9702 14760 112402 43000 15500 4500 3500 1860 10000 12250 5720 96330 208373 29085 Revenue and spending variance 1193 U 4150 F 6450 U 15 U 265 U 130 F 10 F 27 U 75 F 2392 U 3000 U 0 0 300 U 60 U 5000 U 250 U 4280 F 4330 U 6722 U 7915 Flexible Budget 129000 238650 19350 51600 1290 1935 9030 1935 9675 14835 109650 40000 15500 4500 3200 1800 5000 12000 10000 92000 201650 37000 Activity Variance 5550 450 1200 30 45 210 45 225 345 2550 0 0 0 0 0 0 0 0 0 2550 3000 F F F F F F F Planning budget 13200 244200 19800 52800 1320 1980 9240 1980 9900 15180 112200 40000 15500 4500 3200 1800 5000 12000 10000 92000 204200 40000 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Actual 12,900 units Revenue and Actual Spending Results Variances 48 $13,650 Expected @ 12,900 units Flexible Budget $15,360 48 Flights (q) Revenue ($320.00q) Expenses: $1,710 U 8,430 494 U Wages and salaries ($4,000+82q) Fuel ($23.00q) 1,260 156 U 2,350 124 F Airport fees ($650 + $38.00q) Aircraft depreciation ($7.00q) Office expenses ($190 + $2.00q) 336 0 14 F 460 174 U 4 F Total expense 12,836 700 U 304 F Net operating income $814 $2.410 U $3,224 $336 U The overall $336 unfavorable activity variance is due to activity falling below what had been planned for the month. The $1,710 unfavorable revenue variance is very large relative to the company's net operating income and should be investigated. Was this due to discounts given or perhaps a lower average number of passengers per flight than usual? The $494 unfavorable spending variance for wages and salaries is also large and should be investigated. The other spending variances are relatively small, but are worth some management attention-particularly if they recur next month. 7,936 1,104 2,474 Activity Variances 336 286 12,136 $640 U 164 F 46 F 76 F Reference Problems E9-1 Flexible Budget Expected @ 13,200 unit Planning Budget 50 $16,000 8,100 1,150 2,550 350 290 12,440 $3,560 Sheet1 Use this problem a a template for Requirement 4. E9-4