Lewis Co. reports the following results for May. Prepare a flexible budget report showing variances between budgeted and actual results.

	Budgeted						Actual
Sales		$	1,050	per unit			$	1,678,000
Variable expenses		$	420	per unit			$	652,000
Fixed expenses (total)		$	147,500				$	137,000
Units produced and sold			1,350					1,550

List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance)

LEWIS CO. Flexible Budget Performance Report For Month Ended May 31 Flexible Budget Actual Results Variances Fav./Unf. Contribution margin Fixed expenses Income from operations Sales Variable expenses