Refer to the information in Problem 24-3B. Razorback Company€™s actual income statement for 2011 follows.


Required
1. Prepare a flexible budget performance report for 2011.
Analysis Component
2. Analyze and interpret both the
(a) Sales variance and
(b) Direct materialsvariance.

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RAZORBACK COMPANY Statement of Income from For Year Ended December 31,201I Sales (12.000 units) . .. Cost of goods sold Direct materials $288,000 . $95.000 16.000 ...3.300 11.920 Direct labor ..6.720 141,460 146,540 Gross profit. Selling expenses Packaging . Shippingw.... 0.800 37,200 19.200 67.200 General and administrative expenses 4.200 9,360 . 0.000 Salaries. . 23,560 55,780 Income from operations ..