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1 Cuestion 2 - Vuriance analyeix - Vorsion 8 (12 marlas) 4. The movic dhwion of Cadix Co. is operated as a profit eentre. The ecompany uses flexible bud get to measure its performance. 5 6 Buadpet variable conts and their peroentage relationships to sales are: \begin{tabular}{|l|r|} \hline Sules comminsions & 6% \\ \hline Traveling & 5% \\ \hline Delivery & 2% \\ \hline \end{tabular} 10 Budget fixed selling expenses consist of sales salaries $40,000 and advertising $13,200. 11 Noncontrollable fixed costs are budgeted at $70,000. 12 13 The actual selling expenses incurred in February 2020, by the movie division are as follows: \begin{tabular}{|c|l|r|} \hline 13 & The actual selling expenses incurred in February 2020, by the m \\ \hline 14 & Sales commissions & $17,200 \\ \hline 15 & Traveling & 14,700 \\ \hline 16 & Delivery & 7,400 \\ \hline \end{tabular} 17 Fixed selling expenses consist of sales salaries $41,500 and advertising 12,000 . Noncontrollable fixed costs are $65,000. Required: Prepare a responsibility report, assuming that February budget and actual sales were both at $330, 000 . The report should be presented in a controllable marrin 21 Prepare a responsibility report, assuming that February budget and actual sales were both at $330,000. 22 The report should be presented in a controllable margin statement format (from sales to controllable margin). 23 comparing the actual result to the budget, and compute the variances. 24 The variances should be labelled as F (favorable) or U (unfavorable). (12 marks)

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