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. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Sales (units produced and sold) Sales (in dollars) Variable costs Fixed costs For Month Ended May 31 Fixed Budget 1,240 $ 500 per unit $ 200 per unit $ 131,000 LEWIS COMPANY Flexible Budget Performance Report Flexible Budget Actual Results (1,440 units) (1,440 units) Variances Actual Results 1,440 $ 735,000 $ 300,000 $ 126,000 Favorable or Unfavorable

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. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance