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The fixed budget for $21,500$ units of production shows sales of $$430,000$; variable costs of $$64,500$; and fixed costs of

$$141,000.$

f the company actually produces and sells $28,000$ units, calculate the flexible budget income. The company's actual sales were $28,000$ units at $$510,000.$ Actual variable costs were $$113,100$ and actual fixed costs were $$137,000.$

Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable.

Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.