Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately.

ABM Companys fixed budget performance report for August is as follows. The $700,000 budgeted total expenses include $500,000 variable expenses and $200,000 fixed expenses. Actual expenses include $175,000 fixed expenses.

	Fixed Budget	Actual Results	Variances
Sales (in units)	8,000	7,500
Sales (in dollars)	$800,000	$780,000	$20,000 U
Total expenses	$700,000	$640,000	$60,000 F
Income from operations	$100,000	$140,000	$40,000 F