The following budgeted and actual volume and cost data are for July of this year.

Prepare a flexible budget analysis for July of this year by filling in the Flexible budget amounts based on the actual sales volume and calculating the variances. DONT FORGET TO INDICATE WHETHER THEY ARE FAVORABLE OR UNFAVORABLE!

	Budget (per unit)	Budget	Actual	FLEXIBLE BUDGET	Variance
Volume	40,000	40,000	36,000	36,000
Sales Revenue	$70 per unit	$2,800,000	$2,520,000
Budgeted manufacturing costs:
Variable costs:
Direct materials	$35.00	$1,400,000	$1,350,000
Direct labor	15.00	600,000	580,000
Overhead	5.00	200,000	180,000
Total fixed overhead costs	$450,000	450,000	406,000
Net Income before taxes		$150,000	4,000