August Companys budget for the month just ended called for producing and selling 5,000 units of $8 each. Actual units produced and sold were 5,200, yielding revenue of $42,120. Variable costs were budgeted at $3 per unit and fixed costs were budgeted at $2 per unit. Actual variable costs were $3.30 and fixed costs were $12,000.

Required;

1. Prepare a performance report for the current months operation
2. Write a short memo analyzing the current months performance