1. Continuing with the prior problem assume that the year has ended, and Myles Corporation experienced the following revenues and total costs:
   • Total revenue $2,700,000
   • Total variable material costs $272,000
   • Total variable labor costs $357,000
   • Total factory overhead costs $140,000
   • Total fixed selling expense $68,000
   • Total fixed administrative costs $117,000

Assemble a performance report comparing the flexible budget cost numbers from problem 4 with the actual cost numbers given above for the year. Ignore taxes because this variable is beyond management's control and does not belong on the performance report. For each cost item calculate the difference and indicate if this is a favorable or unfavorable variance.