Procter & Gamble uses flexible budgeting to control costs. In June 2036, the company budgets for producing laundry detergent:

• Fixed Costs: $1,000,000
• Variable Costs per unit: $5

Planned production: 200,000 units, Actual production: 250,000 units.

Required:

• Prepare a flexible budget for both planned and actual production.
• Calculate the spending and efficiency variances.