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Top managers of Cole Industries predicted 2018 sales of 15,200 units of its product at a unit price of $10.00. Actual sales for the year were 14,300 units at $11.00 each. Variable costs were budgeted at $2.80 per unit, and actual variable costs were $2.90 per unit. Actual fixed costs of $50,00 exceeded budgeted fixed costs by $5,500.Prepare Cole's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance?

Cole Industries

Flexible Budget Performance Report

For the Year Ended December 31, 2018

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(1) - (3)

(3) - (5)

Budget

Flexible

Sales

Amounts

Actual

Budget

Flexible

Volume

Static

Per Unit

Results

Variance

Budget

Variance

Budget

Units

Sales Revenue

Variable Costs

Contribution Margin