Levis Strauss company manufactures Jeans for men and women. The company uses a static budget process based on previous years activity. The 2020 budget is based on sales of 20 000 units at 100$ per jeans. Operating income is anticipated to be 120 000$. Budgeted variable costs are 64$ per unit, while fixed costs total was 600 000$. Actual income for 2020 was better than expected. The total net income (profit) was 234 000$ higher than expected. Actual variable costs were 4$ lower per unit while fixed costs totaled 570 000$. Actual sales was 21 000 units at 104$ each. Prepare a budget performance report comparing the budget to the actual results. Used the suggested model to explain variances between both budgets. Unit sold Sales Var.costs Gross margin Fixed costs Profit LEVISTRAUSS ACTUAL VS BUDGET ANALYSIS Budget Actual Variance a) A budget is important for planning manufacturing activities and for controlling costs. Can management be happy about their cost control? b) What are the principal components of the variable cost, in a manufacturing business unit.