Beech Company produced and sold 112,000 units in May. For the level of production in May, budgeted amounts were sales, $1,260,000, variable costs, $846,000; and fixed costs, $260,000. The following actual results are available for May. Sales (112,000 units) Variable costs Fixed costs Actual Results $1,237,000 814,500 260,000 Prepare a flexible budget performance report for May. Indicate whether each variance is favorable or unfavorable. (Indicate the effec of each variance by selecting favorable, unfavorable, or no variance.) BEECH COMPANY Flexible Budget Performance Report For Month Ended May 31 Sales Variable costs Contribution margin Fixed costs Income Favorable! Flexible Budget Actual Results Variances Unfavorable $ 1,260,000 Unfavorable 846,000 Favorable 414,000 0 Favorable 260,000 260,000 No variance $ 154,000 $ (260,000) Favorable