David Campbell Tax Services has asked you to prepare a summary performance report identifying its flexible-budget and sales-activity variances
Create an Excel spreadsheet to prepare a summary performance report that identifies flexible-budget and sales activity variances.David Campbell Tax Services has asked you to prepare a summary performance report identifying its flexible-budget and sales-activity variances. The background data for the summary performance report appears in the fundamental assignment.- Static Budget Data: Sales, 3,500 clients at $350 each; variables costs $150,000- Actual Results at actual prices: sales 3,000 clients at $360 per client; variable costs, $920,000; fixed costs, $159, 500Fill in the Blanks:-Static-budget income-Variances-Sales-Activity Variances-Flexible Budget Variances-Actual income1. What caused the flexible-budget variance for sales?2. What was the change in actual income compared to the income calculated in the static budget?3. Can the amount in question 2 be explained by the flexible-budget and sales activity variances? Explain.Actual Results at Actual ACtivityFlexible-Budget VariancesClientsSalesVariable CostsContribution MarginFixed CostsOperating Income