Toyota Motor Corporation uses flexible budgeting for its vehicle production. In March 2041, the company prepares the following budget:

• Budgeted Production: 200,000 units
• Actual Production: 220,000 units
• Budgeted Costs: $100,000,000
• Actual Costs: $110,000,000

Requirements:

• Prepare a flexible budget based on actual production.
• Perform variance analysis for budgeted vs. actual costs.
• Analyze the impact of production volume on costs.
• Recommend strategies to align actual costs with budgeted costs.
• Provide insights on the benefits of flexible budgeting.