sale of 29,000 units and 31,000 units, respectively. P7-7. Preparing a Performance Report By LO3 Use the flexible budget prepared in P7-6 for the 31,000-unit level and the actual operating results listed below for the 31,000-unit level. Critical Thinking Problem Budget and ting Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 31,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? 407 er Budget Ole Budget $4,800,000 633,000 127,500 Item Sales Direct materials Lumber Paint... Direct labor: Cutting Assembly Painting .... Variable factory overhead Variable selling and administrative expense Fixed factory overhead. Fixed selling and administrative expense 115,200 75,300 47,100 137,656 777,400 154,435 765,000 P7-8. Preparing a Performance Report T2