( Please provide a solution on paper as Chegg not allowing to attach the excel file)

Perform all necessary calculations and PROVIDE ALL SUPPORTIVE narrative explanations & reasoning. Make a conclusion for the decision taken. Disclosure of formulas, logic, accuracy and presentation format is considered.

Required: 1. Perform variance analysis in a proper reporting format, in a traditional approach 2. Prepare flexible budget and perform variance analysis, 3. explain important variances and possible problems if foreseen 4. Perform financial position analysis using CVP approach, give recommendations for profitability improvement 5. Explain the difference between flexible budget and standard costing approach application and its management roles.

Below are the financial data of ADVANCE Machinery company. Master Actuals Budget Units 1 000 780 Sales 800 000 639 600 Materials 140 000 123 900 Direct Labor 260 000 147 420 Variable selling costs 50 000 39 000 180 000 40 630 Fixed factory overheads Administrative overheads 150 000 160 650