The fixed budget for 21,500 units of production shows sales of $473,000; variable costs of $64,500; and fixed costs of $140,000.

If the company actually produces and sells 27,000 units, calculate the flexible budget income.

Part 1

Part 2

The companys actual sales were 27,000 units at $549,000. Actual variable costs were $113,500 and actual fixed costs were $131,000. Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)

Flexible Budget Performance Report \begin{tabular}{|l|l|l|l|l|l|} \hline & Flexible Budget & Actual Results & Variances & Favorable/Unfavorable \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular}