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.

a) What is the net income for the flexible budget?

b) What is the net income for actual?

c) What is the total variance?