in class exercise that my professor is going over and i don't understand the way it was explained previously. NOT FOR A GRADE

CH9 In Class Exercises 1. Wilco has the capacity to produce 30,000 units of its product each month. The following table provides information about Wilco's budget and actual performance for April. Construct a flexible budget for Wilco and show all spending variances. Note: Volume variances are not required Actual Spending Variances Static Budget Flexible Budget Volume Variances Units 20,000 25,000 Revenue $240,000 $300,000 Direct Materials $95,000 $125,000 Direct Labor $63,000 $75,000 $20,500 $25,000 Variable Manf. Overhead Fixed Costs $14,000 $18,000 $47,500 $57,000 Net Operating Income