Each group is to prepare a performance report for 1 month relating to findings in the report submitted assuming the actual results using the following format:

Units sold is 140 per month.

Explain an aspect of how the performance report can be used including:

1) how flexible budget is derived

2) the difference between variable and fixed costs

3) what favourable and unfavourable variances are

4) possible reasons for variances

\begin{tabular}{|l|l|l|l|} \hline & Flexible Budget & Actual & Variance \\ \hline Units sold & & & \\ \hline \end{tabular}