Top managers of Marshall Industries predicted 2018 sales of 14,800 units of its product at a unit price of $9.50. Actual sales for the year were 14,600 units at $12.00 each. Variable costs were budgeted at $2.00 per unit, and actual variable costs were $2.10 per unit. Actual fixed costs of $48,000 exceeded budgeted fixed costs by $4,000.

Prepare Marshall's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance?