Marigold Entertainment Corporation prepared a master budget for the month of November that was based on sales of 153,700 board games. The budgeted income statement for the period is as follows.

Sales Revenue				$2,305,500
Variable expenses
Direct materials		$691,650
Direct labor		322,770
Variable overhead		507,210
Total variable expenses				1,521,630
Contribution margin				783,870
Fixed overhead		259,700
Fixed selling and administrative expenses		503,400
Total fixed expenses				763,100
Operating income				$20,770

During November, Marigold produced and sold 197,200 board games. Actual results for the month are as follows.

Sales Revenue				$2,947,800
Variable expenses
Direct materials		$876,100
Direct labor		428,420
Variable overhead		660,760
Total variable expenses				1,965,280
Contribution margin				982,520
Fixed overhead		275,200
Fixed selling and administrative expenses		503,400
Total fixed expenses				778,600
Operating income				$203,920

(a) Prepare a flexible budget for November.

(b) Calculate Marigolds static budget variance for November.

Based on the available information, prepare a performance report for management.

(a) Prepare a flexible budget for November. (Round unit answers to 2 deci Unit 197,200 games