4. Using the information on the "Variances" Worksheet, prepare the contribution margin style income statement (Actual results)for the first quarter of the year. Also, determine the degree of operating leverage (DOL) and margin of safety (MOS) at this level of sales. 5. Using the information on the "Variances" Worksheet, prepare the flexible budget contribution margin style income statement and flexible budget variances. When determining the variances, you should use "@IF" to properly classify the variances as either favorable or unfavorable. \begin{tabular}{lr} \hline Actual units sold & 9,400 \\ \hline Actual selling price & $158 \\ \hline Actual amount paid for direct materials & $213,850 \\ \hline Pounds of direct materials purchased and used & 32,900 \\ \hline Actual amount paid for direct labor & $444,150 \\ \hline Actual direct hours worked & 16,450 \\ \hline Actual amount of variable manufcturing overhead & $188,000 \\ \hline Actual amount of variable selling \& adminsitrative expenses & $131,600 \\ \hline Actual amount of fixed manufcturing overhead & $115,000 \\ \hline Actual amount of fixed selling \& adminsitrative expenses & $127,000 \end{tabular} Variances Flexible Budget for the Quarter Units sold Revenue Variable manufacturing costs Variable selling \& adminstrative costs Contribution margin Fixed manufacturing costs Fixed selling \& adminstrative costs Operating income 13DOL Margin of safety (in sales revenue) Direct labor rate variance Fav/Unfav Direct labor efficiency variance Direct materials price variance Direct materials efficiency variance Actual DL Rate Allowed DL Actual DM Price Allowed DM