Surf World Pools Income Statement Performance Report Year Ended April 30 Flexible Budget for Actual Results at Flexible Budget Actual Number of Sales Volume Static (Master) Actual Prices Variance Output Units Variance Budget 6 ? ? ? 5 Output units (pools installed) Sales revenue 115,000 ? 121,000 ? 100,835 Variable expenses 50,000 ? 53,000 ? 44,165 Fixed expenses 23,000 ? 27,000 ? 27,000 73,000 ? 80,000 ? Total expenses 42,000 ? 69 41,000 ? 69 71,165 29,670 Operating income The following is a partially completed performance report from Surf World Pools, one of Pool Time's competitors. (Click the icon to view the incomplete performance report.) Complete the performance report by filling in all missing values. Be sure to label each variance as favourable (F) or unfavourable (U). Then, answer the following questions: 1. What was the total static budget variance? 2. What was the total sales volume variance? 3. What was the total flexible budget variance? 4. Show that the total sales volume variance and total flexible budget variance sum to the total static budget variance. 5. Interpret the variances, and then give one plausible explanation for the variances shown in this performance report. Complete the performance report by filling in all missing values. Be sure to label each variance as favourable (F) or unfavourable (U). (Enter your answers as positive values. For a varia the appropriate column. Label each variance as favourable (F) or unfavourable (U) unless the variance is zero, then do not select a label.) Surf World Pools Income Statement Performance Report Year Ended April 30 Actual Results at Flexible Budget Actual Prices Variance Flexible Budget for Actual Number of Output Units Sales Volume Variance Static (Master) Budget 6 5 Output units (pools installed) $ 115,000 121,000 100,835 Sales revenue Variable expenses 50,000 53,000 44,165 Fixed expenses 23,000 27,000 27,000 73,000 80,000 71,165 Total expenses 42,000 41,000 29,670 Operating income 1. What was the total static budget variance? The static budget variance was $ 2. What was the total sales volume variance? The sales volume variance is 3. What was the total flexible budget variance? The flexible budget variance was 4. Show that the total sales volume variance and total flexible budget variance sum to the total static budget variance. sales volume variance +: flexible budget variance = static budget variance. 5. Interpret the variances, and then give one plausible explanation for the variances shown in this performance report. Most of the static budget variance arose because Surf World than it originally anticipated. We know this because of the $ sales volume variance