The following information is available for XYZ Company pertaining to its budgeted and actual activities for the period.

Item	Budgeted Activity (10,000 units)	Actual Activity (12,000 units)
Sale Price	$10.00 per unit	$9.75 per unit
Variable Costs (per unit)
Direct Materials	$2.00 per unit	$1.89 per unit
Direct Labor	$3.00 per unit	$3.05 per unit
Factory Supplies	$0.25 per unit	$0.25 per unit
Utilities	$0.35 per unit	$0.33 per unit
Selling Costs	$0.50 per unit	$0.45 per unit
Fixed Costs (for the period)
Depreciation	$2,500	$3,000
Administrative Expenses	$15,000	$13,000
Property Taxes	$1,000	$1,000

Factory Supplies, Utilities, and Depreciation are considered to be overhead items.

The standard for each unit for direct materials is to use 10 ounces at a cost of $0.20 per ounce. The actual production used 9 ounces at a cost of $0.21 per ounce.

The standard for each unit for direct labor is to use 0.20 hours at $15.00 per hour. The actual production used 0.20 hours at $15.25 per hour.

Prepare a flexible budget showing expected sales, variable costs, fixed costs, and net income assuming 10,000 units and 15,000 units of production. Ignore income taxes.