Direct materials per unit: 10 pounds at $25 per pound

Direct labor per unit: 5 hours at $20 per hour

Variable overhead: 5 hours at $8 per hour

Budgeted Selling & Administrative Costs are as follows:

Budgeted Fixed advertising expenses: $5000

Budgeted Fixed sales expenses: $6500

Budgeted Fixed shipping expenses: $9500

The planning budget for July 2023 was based on producing and selling 12000 units. However, during July, the company actually produced and sold 13000 units, at a selling price of $500 per unit, and incurred the following costs:

(a) Purchased 135,000 pounds of direct materials at a cost of $24 per pound. All of this material was used in production.

(b) Direct laborers worked 64,000 hours at a rate of $22.00 per hour

(c) Total variable manufacturing overhead for the month was $540,000

(d) ACTUAL fixed costs: Total fixed advertising expenses were $7,000. Total fixed sales expenses were $8,000. Total fixed shipping expenses were $8,900

Prepare three budgets: a Planning Budget at 12000 units. A Flexible Budget at 1300 units. An Actual Results Budget at 13000. Use only the data given above