out References Mailings Review View Help A A A A EE AaBbCcDe AaBbCcl AaBbCcDA AaBbCcD AaBbCcD AaBbC ABbCcDd APA - Emphasis 1 Heading 1 1 Normal Strong Subtitle Title 1 No Spac Paragraph Styles 2 Problem 3 Susie Smart is manager of a production department of Brain Company. Her department makes one product; the following information for her department was accumulated for 2014: Number of units Direct materials cost Direct labor cost Variable manufacturing overhead Fixed manufacturing overhead Total Required Static Budget Actual Results 100,000 94,000 $800,000 $765,000 $400,000 $371,000 $200,000 $189,000 $290,000 $292,000 $1,690,000 $1,617,000 1)Prepare a flexible budget for the department's actual level of activity. (Use table below) 2Lise the flexible budget to evaluate the performance of Ms. Smart's department by preparing a variance report. (Use table below) 3) Explain why Ms. Smart's performance evaluation does not include sales revenue and net income. Table for 1) & 2) Flexible Budget and Perfomance Report-Production Department Number of units Direct materials cost Direct labor cost Variable manufactoring loverhead Fixed manufacturing overhead 35 FO 16 Flexible Budget Actual Results DELL Variance 27 FRI FO FID F11 1412 9 O PriScr P 87 88 66 O Mosers 9 6