The actual information pertains to the month of September. As part of the budgeting process, Kriger Fencing Company developed the following static budget for September. Kriger is in the process of preparing the flexible budget and understanding the results.

	Actual	Flexible	Static
Sales volume (in units)	10,000		12,500
Sales Revenue $	$500,000	$	625,000
Variable Costs	256,000	$ ________	300,000
Contribution Margin	244,000		325,000
Fixed Costs	229,000	$ ________	225,000
Operating Profit	15,000		100,000

1. The primary reason for low operating profits was ---------
2. The flexible budget will report ________ for variable costs
3. The flexible budget will report ________ for the fixed costs
4. The flexible-budget variance for variable costs is--------------------

The primary reason for high actual operating profits was----------------------