3. Civil Engineers, LLC, has five engineers who design and maintain wetlands. The company had the following net income for the most current year. Civil Engineers, LLC Income Statement YE December 31, 20XX Service revenue $1,185,000 Operating expenses: Engineer salaries $480,000 Biologist salaries $200,000 Administrative staff wages $80,000 Supplies $92,000 Rent $56,000 Utilities $16,000 Insurance $112,000 Miscellaneous $52,000 Total operating expenses $1,088,000 Net income (loss) $97,000 The following information was gathered from management to help prepare this coming year's budgeted income statement: Service revenue will increase 3 percent. Existing engineer and biologist salaries will increase 5 percent, and a new biologist will be hired at the beginning of the year, at a salary of $40,000. Administrative staff wages will increase 15 percent. Supplies and rent will remain the same. Utilities will increase 8 percent. Insurance will increase 20 percent. Miscellaneous expenses will decrease 5 percent. Prepare a budgeted annual income statement for Civil Engineers, LLC. . 4. Hal's Heating produces furnaces for commercial buildings. The company's master budget shows the following standards information. Expected production for January: 300 furnaces Direct materials 3 heating elements at $40 per element Direct labor 35 hours per furnace at $18 per hour Variable manufacturing overhead 35 direct labor hours per furnace at $15 per hour a) Calculate the standard cost per unit for direct materials, direct labor, and variable manufacturing overhead. b) Assume Hals Heating produced 320 furnaces during January. Prepare a flexible budget for direct materials, direct labor, and variable manufacturing overhead