 Here's the actual number. Here's the budgeted number. The actual number is higher. So we would say that's bad or unfavorable. And that's bad or unfavorable because, again, the budget or the actual is higher than the budget. And these are expenses. And then we could say, okay, overhead. The actual is higher again. So that's unfavorable or bad. Unfavorable or bad. This depreciation was lower. So these two are good. So I'm going to say favorable on those. The selling expenses, again, higher in actual than we expected. So that's unfavorable. Unfavorable. And then we've got the selling expenses higher than what we expect. Unfavorable. Unfavorable. Depreciation. We're going to say favorable. And the administrative is going to be favorable. And the bottom line is that the total expenses are going to be unfavorable, yet the net income is higher than we expected. So that's good. So you could see this type of analysis we would have. We can go through a line by line on the performance statement versus the budget versus the actual and say, what did we do? And what was the budget planned to do? What are those differences? And are those good or bad? Now, you can see that there may be a problem with this, however, because it looks like while the sales is higher than we expected. That's great. But many of the expenses are also higher than we had budgeted them to be. And that seems bad. And of course, our net income is higher. So this seems good. So we'd say, hey, net income is good. We're good on the bottom line. We're good on the sales. But we have all these unfavorable items and a lot of the expenses. And so we should go through there based on this static budget, this fixed budget. We'd have to go through there and say, hmm, how can we fix those items? But you might figure, well, what's the reason? Why would all the expenses be unfavorable and the sales be favorable? It could be that the budget units that we budgeted on that we sold were 10,000, let's say. And the actual units that were sold were 12,000. In that case, in other words, if we produced and sold more units than we had budgeted to produce and sell, we would expect the sales to be favorable. And it could quite possibly mean also that many of the expenses will be unfavorable. Because if we produced more than than we expected, you would think that the expenses of us producing that higher level would be more. And so you could see that if we have this static budget, this fixed budget, and we compare it to the actual numbers, we're not really comparing apples to apples, as they say, or the same thing to the same thing. Because this budget is based on us assuming that we're going to have 10,000 units when we actually sold 12,000 units. We produced and sold 12,000 units. And therefore, we can't really do the comparison as well as we would like. We could still say the comparison. We could say, hey, we did better because we sold more units. And that we could see exactly what we would expect. Sales are higher and expenses are also higher. Sales are favorably differed and the expenses are unfavorably differed. But that doesn't really help us to do anything next time period. We can't take this number. We can't really go to the direct materials area and say, hey, you need to do a better job because we have an unfavorable difference here. Because they're going to say, well, it looks like we planned on 10,000 units and we produced 12. We did better than we should have. Of course, it cost more. So we can't really use that as a measure to go in from a managerial standpoint and say, you need to improve or not. Because it doesn't give us enough information. What we need to do then is start by breaking this out into a flexible budget. And then we'll see that we'll even need to break it down further than that to really decide and assign where any unfavorable problems are or where we can improve. So a flexible budget then is going to be the first step to doing that. The first step for us to be able to say, let's compare a budgeted based on actual units produced to what actually happened. And then we can take that number and possibly further break it down even so that we can make performance analysis that makes sense and therefore improve. So the flexible budgets where we'll start with that process, we'll take a look at that next time.