Preparing a performance report Strand Manufacturing, Inc., has the following flexible budget formulas and amounts: Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25 per unit Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 per unit Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 per unit Variable factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 per unit Variable selling and administrative expense . . . . . . . . . . . . . . 1 per unit Fixed factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,000 per month Fixed selling and administrative expense . . . . . . . . . . . . . . . . . $20,000 per month Actual results for the month of May for the production and sale of 5,000 units were as follows: Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $120,000 Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,000 Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000 Variable factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,500 Variable selling and admin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,500 Fixed factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,750 Fixed selling and admin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,800 Prepare a performance report for the month of May that includes the identification of the favorable and unfavorable variances. LO3 LO3