5. Malden Outdoor Products Inc. produces a number of products, including handmade large fiberglass planters for outdoor displays. The firm, which began operations at the beginning of the current year, uses a standard cost system. The standard costs for one large planter are provided below:

Direct material (3 lbs. @ $8.00)	$ 24.00
Direct labor (2 hrs. @ $15.00)	30.00
Variable overhead	24.00
Fixed overhead	6.00
Standard cost per unit	$84.00

The $6.00 fixed overhead rate is based on total budgeted fixed overhead costs of $18,000 and estimated sales of 3,000 units. There were no changes in any inventory account during the period. The company produced and sold 3,100 units at the following costs:

Direct materials (9,000 lbs.)	$ 81,270
Direct labor (6,000 hrs.)	78,000
Variable overhead	76,000
Fixed overhead	16,500
Total production costs incurred	$251,770

Required

Prepare a flexible budget to evaluate the current year performance and compute the flexible budget variances. [15 points]