please help me provide complete and correct answer this time with all working for both parts answer in text please answer correct Porter discovered the following information about the behavior of SoftGro's selling expenses.• The total compensation paid to the sales force consists of a monthly base salary and a commission; thecommission varies with sales dollars.• Sales office expense is a semivariable cost with the variable portion related to the number of orders processed.The fixed portion of office expense is $6,360,000 annually and is incurred uniformly throughout the year.• Subsequent to the adoption of the annual budget for the current year, SoftGro decided to open a new salesterritory. As a consequence, approval was given to hire six additional salespeople effective November 1. Porterdecided that these additional six people should be recognized in her revised report.• Per diem reimbursement to the sales force, while a fixed amount per day, is variable with the number of salespersonnel and the number of days spent traveling. SoftGro's original budget was based on an average sales forceof 90 people throughout the year with each salesperson traveling 15 days per month.• The company's shipping expense is a semivariable cost with the variable portion, $5.00 per unit, dependent onthe number of units sold. The fixed portion is incurred uniformly throughout the year.Required:1. Why would Susan Porter propose that SoftGro use flexible budgeting in this situation?2. Prepare a revised Monthly Selling Expense Report for November that would permit Mark Fletcher to more clearlyevaluate SoftGro's control over selling expenses.Complete this question by entering your answers in the tabs below.Required 1 Required 2Prepare a revised Monthly Selling Expense Report for November that would permit Mark Fletcher to more clearly evaluateSoftGro's control over selling expenses. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Sel"None" and enter "0" for no effect (i.e., zero variance). Do not round intermediate calculations.)SOFTGRO, INC.AdvertisingStaff salariesSales salariesCommissionsPer diem expenseOffice expensesShipping expensesTotal expensesRevised Monthly Selling Expense Report for NovemberFlexible Budget$ 2,624,000270,000269,200 X908,160464,000834,800$1,822,0007,192,160Actual$2,600,000 $ 24,000Variance270,000268,800908,160460,8003,200845,400 x(10,600)1,862,000 >(40,000)$ 7,215,160 $ (23,000)< Required 14000UnfavorableNoneUnfavorableNoneUnfavorableFavorableFavorableFavorableRequired 2 > Mark Fletcher, president of SoftGro, Inc., was looking forward to seeing the performance reports for Novemberbecause he knew the company's sales for the month had exceeded budget by a considerable margin. SoftGro, adistributor of educational software packages, had been growing steadily for approximately two years. Fletcher'sbiggest challenge at this point was to ensure that the company did not lose control of expenses during this growthperiod. When Fletcher received the November reports, he was dismayed to see the large unfavorable variance inthe company's Monthly Selling Expense Report that follows.Unit salesDollar salesOrders processedSales personnel per monthAdvertisingStaff salariesSales salariesCommissionsPer diem expenseOffice expensesShipping expensesTotal expensesSOFTGRO, INC.Monthly Selling Expense ReportFor the Month of NovemberAnnualBudget2,170,000$143,220,00084,00090NovemberBudget314,000$20,724,0009,00090$ 31,200,0003,240,0003,024,0005,728,8005,184,000432,0009,552,000796,00012,554,0001,712,000$ 70,482,800 $ 6,890,960$ 2,600,000270,000252,000828,960NovemberActual344,000$22,704,0008,30096NovemberVariance30,000$1,980,000(700)(6)24,000 U$ 2,624,000 $270,000269,20017,200 U908,16079,200 U464,00032,000 U834,80038,800 U1,822,000110,000 U$ 7,192,160 $ 301,200 UFletcher called in the company's new controller, Susan Porter, to discuss the implications of the variances reportedfor November and to plan a strategy for improving performance. Porter suggested that the company's reportingformat might not be giving Fletcher a true picture of the company's operations. She proposed that SoftGroimplement flexible budgeting. Porter offered to redo the Monthly Selling Expense Report for November usingflexible budgeting so that Fletcher could compare the two reports and see the advantages of flexible budgeting.

A flexible budget is a type of budget that adjusts to changes in activity levels or production…

Mark Fletcher, president of SoftGro, Inc., was looking forward to seeing the performance reports for November because he knew the company's sales for the month had exceeded budget by a considerable margin. SoftGro, a distributor of educational software packages, had been growing steadily for approximately two years. Fletcher's biggest challenge at this point was to ensure that the company did not lose control of expenses during this growth period. When Fletcher received the November reports, he was dismayed to see the large unfavorable variance in the company's Monthly Selling Expense Report that follows.