The Perkins Company provided the following data developed for its master budget: Sales price $11.00 per unit Costs: Direct materials $3.00 per unit Direct labor $4.25 per unit Variable overhead $0.50 per unit Factory depreciation $12,000 per month Supervision $11,000 per month Selling expense $0.25 per unit Administrative cost $9,000 per month Required: Prepare flexible budgets for sales of 20,000 and 24,000 units. Use a contribution margin format. The Perkins Company's actual results were 22,750 units sold with the following costs: Sales 248,000 Direct materials 69,000 Direct labor 103,000 Variable overhead 11,000 Selling expense 4,000 Depreciation 17,000 Supervision 14,000 Administration 7,000 Using a contribution format income statement: (a) Determine Perkins' actual income. (b) Determine Perkins' budgeted income. (c) Determine the variance for each line item and tell whether it is favorable or unfavorable