Top managers of Preston Industries predicted 2016 sales of 14,800 units of its product at a unit price of $9.00. Actual sales for the year were 14,000 units at $10.00 each. Variable costs were budgeted at $2.60 per ?unit, and actual variable costs were $2.70 per unit. Actual fixed costs of $44,000 exceeded budgeted fixed costs by $3,500.

Prepare Preston?'s flexible budget performance report. What variance contributed most to the? year's favorable? results? What caused this? variance?

Prepare a flexible budget performance report for the year.? First, complete the flexible budget performance report through the contribution margin? line, then complete the report through the operating income line.? Finally, compute the total variances.