Ivanhoe Manufacturing produces ceiling fans. A master budget was prepared by the controller based on sales of 19,900 fans for the month of May. The budgeted income statement for the period follows:

Budgeted Income Statement
Revenue				$3,502,400
Variable expenses
Direct materials		$975,100
Direct labor		477,600
Variable overhead		676,600
Total variable expenses				2,129,300
Contribution margin				1,373,100
Fixed overhead		338,300
Fixed selling and administrative expenses		674,800
Total fixed expenses				1,013,100
Operating income				$360,000

During May, Ivanhoe produced and sold 24,100 fans and had the following actual results:

Actual Income Statement
Revenue				$4,221,900
Variable expenses
Direct materials		$1,130,400
Direct labor		636,100
Variable overhead		827,100
Total variable expenses				2,593,600
Contribution margin				1,628,300
Fixed overhead		361,500
Fixed selling and administrative expenses		674,800
Total fixed expenses				1,036,300
Operating income				$592,000

(a-b)

(a) Prepare a flexible budget for May.

b. Calculate Ivanhoes static budget variance for May.