Edison Electronics produces wireless headphones. Management planned to make and sell 9,000 sets of headphones during the year and determined the standard price and cost data to be as follows:

Standard price and variable costs
Sales	$135.00 per unit
Raw Materials	$33.20 per unit
Direct Labor	$42.50 per unit
Overhead	$19.70 per unit
Planned fixed costs
Manufacturing overhead	$98,000
Selling, general and administrative costs	$138,000

Edison Electronics actually produced and sold 9,700 sets of headphones for the year. Actual sales and costs for the year were as follows:

Sales	$1,285,300
Variable costs
Raw Materials	$335,600
Direct Labor	$405,500
Overhead	$180,400
Fixed costs
Manufacturing overhead	$102,500
Selling, general and administrative costs	$134,800

2. Using the information provided in Problem No. 1 above related to Edison Electronics, perform the following managerial accounting analysis:

Required:

1. Prepare the flexible budget showing the sales and each cost line as a separate line item.

b. Determine the sales and variable cost volume variances and indicate whether each variance is favorable or unfavorable