Rogers Corporation prepared a budget last period that called for sales of 20,000 units at a price of $30 each. The production costs per unit were estimated to amount to $14.00 variable and $6.00 fixed. All selling and administrative costs were fixed at $50,000. During the period, production was 22,000 units. The actual selling price was $33.00 per unit. Actual variable costs were $16.00 per unit and actual fixed production costs totaled $66,000. Selling and administrative costs were 10% higher than the budgeted amounts.

Required:

a. Show operating statements for the actual output, as well as a static budget and a flexible budget.

b. Explain what is indicated when comparing the operating statements