Halima & Co. has prepared the following fixed budget for the year 20X9:

Sales 9,000 units

Production 9,000 units

$

Direct materials 40,000

Direct labour 15,000

Variable overheads 10,500

Fixed overheads 8,000

Budgeted selling price $12 per unit.

At the end of the year, the following costs had been incurred for the actual production of 11,000 units.

$

Direct materials 50,000

Direct labour 18,500

Variable overheads 13,000

Fixed overheads 9,000

The actual sales were 13,000 units at $13 per unit.

Required:
(a) Prepare a flexed budget for the actual activity for the year and calculate the variances between actual and flexed budgets.