The following is a partially completed performance report for Surf World. (Click the icon to view the information.) Read the 1. How many pools did Surf World originally think they would install in April? The that Surf World planned to sell pools in April. 2. How many pools did Surf World actually install in April? The that Surf World installed pools in April. 3. How many pools is the flexible budget based on? Why? The flexible budget for performance reports is always based on the output for the month. This is done so that managers can compare ], meaning they can compare to Therefore, Surf World's flexible budget is based on pools. 4. What was the budgeted sales price per pool? (Round your answer to the nearest whole dollar.) The budgeted sales price is per pool. 5. What was the budgeted variable cost per pool? (Round your answer to the nearest whole dollar.) The budgeted variable cost is per pool. 6. Define the flexible budget variance. What causes it? As the name suggests, the flexible budget variance is the difference between the and the Since the and the are based on of output, this variance highlights unexpected revenues and expenses that are caused by factors other than 7. Define the volume variance. What causes it? The volume variance is the difference between the and the The only difference between these two budgets is the Therefore, the volume variance is caused by differences between 8. Fill in the missing numbers in the performance report. Be sure to indicate whether variances are favorable (F) or unfavorable (U). (Enter the variances as positive numbers. Label each variance as favore (F) or unfavorable (U). If the variance is 0 , make sure to enter in a "0". A variance of zero is considered favorable.) Surf World Flexible Budget Performance Report: Sales and Operating Expenses For the Year Ended April 30 Flexible Budget Flexible Output units (pools installed) \begin{tabular}{ccccc} Actual & Variance & Budget & Volume Variance & Master Budget \\ \hline 5 & & \end{tabular} Sales revenue $110,000$114,000$1,200 Operating expenses: Variable expenses Requirements 1. How many pools did Surf World originally think it would install in April? 2. How many pools did Surf World actually install in April? 3. How many pools is the flexible budget based on? Why? 4. What was the budgeted sales price per pool? 5. What was the budgeted variable cost per pool? 6. Define the flexible budget variance. What causes it? 7. Define the volume variance. What causes it? 8. Fill in the missing numbers in the performance report