Top managers of Preston Industries predicted 2024 sales of 15,100 units of its product at a unit price of $9.00. Actual sales for the year were 14,100 units at $12.50 each. Variable costs were budgeted at $2.60 perunit, and actual variable costs were $2.70 per unit. Actual fixed costs of $49,000 exceeded budgeted fixed costs by $3,500.

Prepare Preston's flexible budget performance report. What variance contributed most to theyear's favorableresults? What caused thisvariance?

Prepare the flexible budget performance report for the year.First, complete the flexible budget performance report through the contribution marginline, then complete the report through the operating income line.Finally, compute the total variances. (Enter a"0" for any zero balances. For any$0 variances, leave the Favorable(F)/Unfavorable (U) inputblank.)