7) At the end of the year's operations, Zan Corporation actually sold 68,000 units. Production during the period was adjusted to match sales. This means the finished goods inventory they started with at the beginning of the year equals the finished goods inventory they ended the year with on December 31 and the number of units sold equals the number of units produced, 68,000. Complete the "Flexible Budget" column for Zan Corporation below using the cost per unit in 2) above. Calculate the variances and identity each variance as "F" for Favorable or "U" for Unfavorable. Zan Corporation Flexible Budget Report Budgeted # of units Actual Note 5 Flexible Budget (calculate) Revenue/Spending Variance 68,000 68,000 2,440,000 Sales Revenue Variable Expenses: Direct Material 840,000 Direct Labor 360,000 Variable overhead 231,000 Variable S&A Expense 210,800 Total Variable Expenses 1,575,000 Contribution Margin 865,000 Fixed Expenses: Fixed Overhead 340,000 Fixed S&A Expenses 390,000 Total Fixed expenses 730,000 Net Operating Income 68,200 0 F/U (a) Quarter's beginning Finished Goods Inventory (calculate as 20% of previous quarter's production) (b) 80% of Quarter's production (c) Total Sales in units (d) Sales price per unit (e) Budgeted Sales Revenue (c) x (d) 1st Quarter Zan Corporation Budgeted Sales in Units 2nd Quarter 4,000 3,200. 4 3rd Quarter 4th Quarter Annual Total 3,800 3,600 15,200 14,400 13,600 121800 -16,800 18,400 18,200 17,200 70,600 36 36 36 36 34 604,800 662,400 655,200 619,200. 0.2,541,600