CG Supplies forecasted production of 12,000 pens and sales of 10,000 pens for the month of April. The company forecasted a price of $2 per pen. CG also forecasted a COGM of $18,000 (that includes fixed manufacturing overhead of $3,000) and SG&A expenses of $4,000 (that includes variable selling expenses of $2,000). CG Supplies actually produced 10,500 pens and sold 9,000 pens for total revenues of $19,000. Actual COGM was $16,000 and actual SG&A was $3,500. (a) Prepare actual, static and flexible budget income statements for CG Supplies assuming zero beginning balance in finished goods. (1 point) (b) Compute the static and flexible budget variances for revenues and COGM and indicate if it is favorable or unfavorable. (0.5 point)