Lewis Co. reports the following results for May. Prepare a flexible budget report showing variances between budgeted and actual results. Budgeted Actual Sales $ 300 per unit $ 435,000 Variable expenses $ 120 per unit $ 172,000 Fixed expenses (total) $ 125,000 $ 122,000 Units produced and sold 1,200 1,400 List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance)

                                                 LEWIS Co.

                           Flexible budget performance report

                                     For month ended May 31

                               Flexible budget  Actual results  Variances    Result

Sales                        $420,000           $435,000        $15,000         Fav

                                (1400*$300)

Variable expense    $168,000           $172,000           $4,000         Unfav

                                (1400*$120)

Contr. margin          $252,000          $263,000         $11,000         Fav

Fixed cost                $125,000            $122,000          $3,000          Fav

Net Income             $127,000            $141,000          $14,000         Fav

answer social mobility;