Dandy Manufacturers company Ltd makes of product Y has prepared it's budget for 2018, based on two activity levels of 80% and 100% with production Units of 2,800 and 3,500 units respectively.

The budget is as follows: 80% 100% Sales $224,000 $280,000 Direct Material $84,000 $105,000 Direct Labour $50,400 $63,000 Production overhead $48,800 $53,000

The company's actual result for the period is as follows: Sales in Units 3,150 Units Sales $252,000 Direct material $94,000 Direct labour $60,000 Overhead (60% of amount is fixed) $50,000

Required: Prepare a flexible budget for a production level of 70% and 90% and compare the flexible budget at 90% level of activity with the actual result.