Brief Exercise $15-5($Static$)$ Determining flexible budget variances LO $15-5$

Mustang Manufacturing Company$$s standard and actual price and cost data follows.

Standard Actual

Unit sales $20,000$ units $21,500$ units

Sales price $$200$ per unit $$180$ per unit

Variable manufacturing cost $$120$ per unit $$110$ per unit

Fixed manufacturing cost $$300,000$ $$310,000$

Fixed selling and administrative cost $$140,000$ $$115,000$

Required

a$.$ & b$.$ Determine the flexible budget variances. Classify the variances as favorable or unfavorable.

Note: Select "None" if there is no effect $($i$.$e$.,$ zero variance$).$