4. Of.5. Sades is a compuny thut mumofactures highent temis nocueth. Mte. McW whine is resident. He has jut reweived the financial stanemeats lhom lis aceonetuat for the ar ending Oetober 34, 2005. He would teally lide to compare it with the bualget be prepared at the beginning of the fiscal year in erber to undertand why there ary some variances. You obtain the following infomutien we that yon can resped os Mr. Mcw Whebing's w question: 1) The following budget was adopted at the start of the fourth your 2) Affer examining and discussing the actual results from the finusial statrneibs that Mrr. McWebbing has just received, the following points become apperent: a) Actual sales arooutd to 2,500 units at 5+10 eack 4 of 10 b) Direct labour was paid at an averact rade of 519 an hoer, c) Eacb racquet required 5.5 bees of diret labeur ho poodoee: $55,000 : c) 1,200 kilograms of grophite and 2,275 metres of pat string were anet. i) A kilo of eraphite sobt an average of $44, and a meter of gut atring cost 35. The other direst materials cen $50,000; h) Administrative salaris amounted to 5165,000 , and other allenistrative coits were \$55.000: i) The advertiking coetract requed a moekly pay=ent of 51.000 ples a poyalty of 50.01 per dollar of salec. Required: 1) Prepare a flexibie budget income statement for the fiscal year ended March 31 . 2005