Joanne Graves is manager of a production department of Fordham Company. Her department makes one product; the following information for her department was accumulated for the current year: Number of units Direct materials cost Direct labor cost Variable manufacturing overhead Fixed manufacturing overhead Total Static Budget Actual Results 100,000 94.000 $ 400.000 $ 380,000 200,000 185,000 100,000 94,000 145.000 148,000 845,000 S 807,000 Required: 1) Prepare a flexible budget for the department's actual level of activity. Flexible Budget Actual Results Variance # of Units Direct Material Cost Direct Labor Cost Variable Manufacturing Overhead Fixed Manufacturing Overhead Total 2) Using the results of preparing the flexible budget, evaluate the performance of Ms. Graves' department 3) Why does the budget not include sales revenue and net income