The following data were collected by Bemidji Co. for the month of June:

Static budget data:
Sales..............................................................9,000 units @ $30/unit
Variable costs...............................................$23 per unit
Total fixed costs...........................................$18,800
Actual results:
Sales...............................................................9,600 units @ $29/unit
Variable costs................................................$24 per unit
Total fixed costs............................................$18,200

Required:

1. Prepare the static budget.

2. Prepare the flexible budget. Explain its usefulness for management control in one or two sentences.