Riviera Manufacturing, Inc., has the following flexible budget formulas and amounts:
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$25 per unit
Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 per unit
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 per unit
Variable factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 per unit
Variable selling and administrative expense . . . . . . . . . . . . . .....1 per unit
Fixed factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000 per month
Fixed selling and administrative expense . . . . . . . . . . ... . . $20,000 per month
Actual results for May for the production and sale of 5,000 units were as follows:
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $120,000
Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,000
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000
Variable factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,500
Variable selling and administrative expense . . . . . . . . . . . . . ... 5,500
Fixed factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,750
Fixed selling and administrative expense . . . . . . . . . . . . . . . .... 19,800
Prepare a performance report for May that includes the identification of the favorable and unfavorable variances.