Top managers of Preston Industries predicted 2018 sales of 15,200 units of its product at a unit price of $7.00. Actual sales for the year were 14,400 units at $9.50 each. Variable costs were budgeted at $2.70 per unit, and actual variable costs were $2.80 per unit. Actual fixed costs of $45,000 exceeded budgeted fixed costs by $5,300.

Prepare Prestons flexible budget performance report. What variance contributed most to the years favorable results? What caused this variance.

		1	2 (1) (3)		3	4 (3)- (5)		5
	budget Amounts Per unit	Actual results	Flexible Budget variance		Flexible budget	Sales Volume variance		Static budget
units
Sales revenue
Variable costs
Contribution margin