Exercise 21-4 Preparing a flexible budget performance report LO P1 Bay City Company's fixed budget performance report for July follows. The $647,500 budgeted total expenses include $487,500 variable expenses and $160,000 fixed expenses. Actual expenses include $158,000 fixed expenses. Variances Sales (in units) Sales (in dollars) Total expenses Income from operations Fixed Budget 7,500 $750,000 647,500 $ 102,500 Actual Results 7,200 $ 737,000 641,000 $ 96,000 $13,000 U 6,500 F $ 6,500U Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately. Answer is complete but not entirely correct. Sales BAY CITY COMPANY Flexible Budget Performance Report For Month Ended July 31 Flexible Actual Results Variances Budget Fav./Unf. $ 750,000 $ 737,000 $ 13,000 Favorable (487,500) 483,000 (4,500) Unfavorable 262,500 254,000 8,500 X Favorable (160,000) (147,500) (12,500) Favorable $ 102,500 $ 106,500 $ (4,000) Favorable Variable expenses Contribution margin Fixed expenses Income from operations >