Contemporary furniture manufactures office desks. The company budgeted to sell 5,000 desks at $200.00 per desk in 2018. Budgeted costs include $80.00 variable cost per desk, and $200,000 fixed costs/year. In 2018 the company sold 6,000 desks at $190.00, and incurred $78.00 variable cost per desk and $220,000 fixed cost for the year.

Required:

Prepare, in proper form, a variance analysis report identifying both flexible budget and sales-volume variances. Label all component variances as (F) (favorable) or (U) (unfavorable).