Santana Company produced and sold 100,000 units of its product in July.

For the level of production achieved in July, the budgeted amounts were: sales, $850,000; variable costs, $675,000; and fixed costs, $150,000.

July actual financial results are: sales, $837,500; variable costs, 656,250; and fixed costs, $150,000.

Prepare a flexible budget performance report for July.

	Flexible		Flexible
	Budget	Actual	Budget
	_____units	units	Variances
Sales
-Var Cost
Margin
-FC
Income

-What is net income for the flexible budget?

-What is net income for actual?

-What is the total variance?

-What is net income for the master budget?