SECTION 5 - PROBLEM QUESTION - Total 15 marks Transformers Ltd manufactures and sells a line of electrial heaters which are distributed mainly through hardware and electrical store As the Accountant at the company. you wanted to analyze profitability Your Accounting assistant provided you with the following 5 Per Static/Master Per Actual Budget Budget Selling price, per unit $20.00 $21.00 3 Variable manufacturing cost, per unit $11.00 $12.00 Variable marketing and administrative expenses, total (see note below) $9,000.00 $11,550.00 LO Fixed manufacturing cost, total $34,500.00 $36,000.00 1 Fixed marketing and administrative avene testal $40,000.00 $44,000.00 2 Sales volume, in units 9,000 10,000 13 4 Note: 5% of sales revenue 15 16 Required: 17 18 a) Your assistant has requested you to complete the "Flexible Budget" and "Static/Master Budget" columns of the analysis, 19 reproduced below. Complete the information as requested. (12 marks) HERE TO SAVE YOUR WORK 16 Required: 1 a) You assistant has requested you to complete the "Flexible Budget and Static/Masa Budget columns of the malysis 19 reproduced below. Complete the information as requested (12 marks) 20 21 Flexible Actual Results Static/Maste Budget Budget 22 Units Sold 23 24 Variable expenses 26 27 28 29 30 31 Fixed expenses: 32 33 34 58 4 5 36 b. Calculate the following 3 variances, flexible budget variance, sales volume variance, and total static budget variance and use 7 the green drop down to indicate whether the variance is Favorable on Unfavorable marks) 39 Flexible Budget Variance 10 1 Sales Volume Variance 12 13 Total Static Budget Variance 45 46 47 AR