August Company’s budget for the current month called for producing and selling 5,000 units at \($8\) each. Actual units produced and sold were 5,200, yielding revenue of

\($42,120.\) Variable costs per unit are budgeted at \($3\) and fixed costs are budgeted at \($2\) per unit. Actual variable costs were \($3.30\) and fixed costs were \($12,000\).

a. Prepare a variance report for the current month’s operations comparing actual and budgeted revenues and costs.

b. Write a short memo analyzing the current month’s performance.