Lewis Company reports the following fixed budget and actual results for May. Prepare a flexible budget performance report showing variances between budgeted and actual results. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)

Fixed BudgetedActual ResultsSales (units produced and sold)1,200 1,400Sales (in dollars)$ 300per unit$ 435,000Variable costs$ 120per unit$ 172,000Fixed costs$ 125,000 $ 122,000