Newsome Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:

- Direct materials per unit: 7 pounds at $10 per pound - Direct labor per unit: 3 hours at $14 per hour - Variable overhead: 3 hours at $6 per hour

The planning budget for March 2019 was based on producing and selling 35,000 units. However, during March the company actually produced and sold 32,000 units and incurred the following costs:

(a) Purchased 245,000 pounds of raw materials at a cost of $9.50 per pound. All of this material was used in production.

(b) Direct laborers worked 102,400 hours at a rate of $14.50 per hour

(c) Total variable manufacturing overhead for the month was $580,000

(d) Total advertising expenses were $210,000. Total sales expenses were $455,000. Total shipping expenses were $115,000.

WHAT TO DO: Prepare three budgets:

A Planning Budget at 35,000 units.

A Flexible budget at 32,000 units.

An Actual Results Budget at 32,000.

Use only the data given above (i.e. the sales price per unit is not known).