The cost accountant for Christy Two Wheeler Co. prepared the following monthly performance report relating to the Finishing Department:

	Budgeted	Actual
	Production	Production
	(6,000 Units)	(6,500 Units)
Direct materials used....................................................................................	$90,000	$99,600
Direct labor....................................................................................	48,000	55,200
Variable manufacturing overhead.............................................................................	6,000	9,000
Fixed manufacturing overhead.............................................................................	66,000	64,200

(a) Compute the amounts that should be included for each of the following in a flexible budget prepared for a 6,500-unit level of production:

Direct materials: $_______________

Direct labor: $_______________

(3) Fixed manufacturing overhead: $_______________

(b) Assume that a revised performance report is prepared for the 6,500-unit level of production using a flexible budget approach. Compute the cost variances for each of the following. Indicate whether each variance is favorable (F) or unfavorable (U).

Direct materials: $_______________

Direct labor: $_______________

(3) Fixed manufacturing overhead: $_______________