At the monthly management meeting, Leslie Smith, president of Mama Fran's Fantastic Foods, was reviewing the April budget report with some satisfaction. Our actual results are never exactly what we budget, but I guess if we're off by only 2% to 3%, we've done a good job forecasting. The report she referred to follows: Variance 50,000 F $355,000 F April Budget Report Actual Budget Sales (in pounds) 450,000 400,000 Revenue $3,555,000 $3,200,000 Less variable expenses Direct material 865,000 580,000 Direct labor 348,000 336,000 Variable overhead 750,000 648,000 Total variable expenses 1,963,000 1,564,000 Contribution margin $1,592,000 $1,636,000 285,000 U 12,000 U 102,000 U 399,000 U ($44,000 U) Nathan Porter, the company's purchasing manager, chimed in. "It surprises me that we did as well as we did. I know that chocolate prices went up dramatically last month, so I expected a much larger variance. And we had that little mix-up when we ordered a batch of whole almonds instead of sliced almonds." But controller Ashley Corley looked concerned. "Hang on a minute, guys. I don't think this budget report gives us the true picture. Let me work on it some more and get back to you." Ashley's first step was to track down the following standard cost card for the cookies. Total Cost $0.20 0.75 0.50 Chocolate Nut Supreme Cookies Item Quantity Standard Unit Cost Direct materials Cookie mix 10 ounces $0.02 per ounce Milk chocolate 5 ounces $0.15 per ounce Almonds 1 ounce $0.50 per ounce Total direct materials Direct labor Mixing 1 minute $14.40 per hour Baking 2 minutes $18.00 per hour Total direct labor Variable overhead 3 minutes $32.40 per hour Total standard cost per pound $1.45 0.24 0.60 0.84 1.62 $3.91 Ashley also tracked down this additional information about the month's operations. Actual Quantity Used Actual Cost 4,650,000 ounces 2,660,000 ounces 480,000 ounces $93,000 532,000 240,000 Item Direct materials Cookie mix Milk chocolate Almonds Direct labor Mixing Baking Variable overhead Total actual variable costs 540,000 minutes 800,000 minutes 108,000 240,000 750,000 $1,963,000 Prepare a more informative performance report for the month of April. (Do not leave any answer field blank. Enter o for amounts.) Actual Results Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget