Melissa Jones is manager of a production department of Seal Company. Her department makes one product; the following information for her department was accumulated for 2014: Static Budget 100,000 Actual Results 91,000 Number of units Direct materials cost 400,000 350,000 200,000 180,000 Direct labor cost Variable manufacturing overhead 100,000 97,000 Fixed manufacturing overhead Total 145,000 $ 845,000 146,000 $ 773,000 Required: 1)Using the table below, prepare a flexible budget for the department's actual level of activity. 2) Using the table below, use the flexible budget to evaluate the performance of Ms. Jones' department. 3) Why does the budget not include sales revenue and net income? Flexible Budget Actual Results Variance Number of units Pirect materials cost Pirect labor cost Variable manufacturing overhead Fixed manufacturing overhead Total