At the beginning of the year Myles Corporations assembled a budget calling for sales of 50,000 units. After the year is over, Myles Corporation closed the books and recorded sales of 45,000 units. Using the data below, assemble a static budget and flexible budget for Myles using the projected and actual sales units.

Selling prices per unit are budgeted at $60

Variable material costs are budgeted at $6.00 per unit

Variable labor costs are budgeted at $8.00 per unit

Variable factory overhead costs are budgeted at $3.00 per unit

Fixed selling expense is budgeted at $65,000

Fixed administrative costs are budgeted at $121,000

Taxes are budgeted at 28% of operating profit.

(2 points) Continuing with the prior problem assume that the year has ended, and Myles Corporation experienced the following revenues and total costs:

Total revenue $2,700,000

Total variable material costs $272,000

Total variable labor costs $357,000

Total factory overhead costs $140,000

Total fixed selling expense $68,000

Total fixed administrative costs $117,000

Please assemble a performance report comparing the flexible budget cost numbers from problem 4 with the actual cost numbers given above for the year. Ignore taxes because this variable is beyond managements control and does not belong on the performance report. For each cost item calculate the difference and indicate if this is a favorable or unfavorable variance