Preparing a performance report

Strand Manufacturing, Inc. has the following flexible budget formulas and amounts:

Sales

$ 25 per unit

Direct materials

5 per unit

Direct labor

3 per unit

Variable factory overhead

4 per unit

Variable selling and administrative expense

1 per unit

Fixed factory overhead

$25,000 per month

Fixed selling and administrative expense

$20,000 per month

Actual results for the month of May for the production and sale of 5,000 units were as follows:

Sales

$120,000

Direct materials Direct labor Variable factory overhead Variable selling and admin. Fixed factory overhead Fixed selling and admin. 26,000 14,000 25,500 5,500 26,750 19,800 Prepare a performance report for the month of May that includes the identification of the favorable and unfavorable variances.