Please answer all the requirements and show calculations. I will give you a positive rating :) Thanks in advance!

The Tucci Toy Company manufactures toy building block sets for children. Tucci is planning for 2025 by developing a master budget by quarters. Tucci's balance sheet for December 31, 2024, follows:

Tucci Toy Company

Balance Sheet

December 31, 2024

Assets

Current Assets:

Cash $15,000

Accounts Receivable 55,000

Raw Materials Inventory 1,050

Finished Goods Inventory 5,100

Total Current Assets. $76,150

Property, Plant, and Equipment:

Equipment 206,000

Less: Accumulated Depreciation (39,000) 167,000

Total Assets $243,150

Liabilities

Current Liabilities:

Accounts Payable $17,000

Stockholders' Equity

Common Stock, no par $130,000

Retained Earnings. 96,150

Total Stockholders' Equity 226,150

Total Liabilities and Stockholders' Equity $243,150

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Requirements:

Other budget data for Tucci Toy Company:

(Unless otherwise noted, assume all of the following events occurred during 2024 and that any balances given are stated as of December 31, 2024.)

a.	A. Budgeted sales are 1,300 sets for the first quarter and expected to increase by 100 sets per quarter. Cash sales are expected to be 40% of total sales, with the remaining 60% of sales on account. Sets are budgeted to sell for $70 per set.
b.	B. Finished Goods Inventory on December 31, 2024, consists of 150 sets at $34 each.
c.	C. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2026 are expected to be 1,700 sets. FIFO inventory costing method is used.
d.	D. Raw Materials Inventory on December 31, 2024, consists of 1,050 pounds. Direct materials requirement is seven pounds per set. The cost is $1 per pound.
e.	E. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2025, is 1,050 pounds; indirect materials are insignificant and not considered for budgeting purposes.
f.	F. Each set requires 0.30 hours of direct labor; direct labor costs average 14 per hour.
g.	G. Variable manufacturing overhead is $4.20 per set.
h.	H. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $5,202 per quarter for other costs, such as utilities, insurance, and property taxes.
i.	I. Fixed selling and administrative expenses include $13,000 per quarter for salaries; $2,400 per quarter for rent; $1,500 per quarter for insurance; and $1,500 per quarter for depreciation
j.	J. Variable selling and administrative expenses include supplies at 3% of sales.
k.	K. Capital expenditures include $20,000 for new manufacturing equipment, to be purchased and paid for in the first quarter.
l.	L. Cash receipts for sales on account are 50% in the quarter of the sale and 50% in the quarter following the sale; Accounts Receivable balance on December 31, 2024, is expected to be received in the first quarter of 2025; uncollectible accounts are considered insignificant and not considered for budgeting purposes
m.	M. Direct materials purchases are paid 90% in the quarter purchased and 10% in the following quarter; Accounts Payable balance on December 31, 2024, is expected to be paid in the first quarter of 2025.
n.	N. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred.
o.	O. Income tax expense is projected at $4,500 per quarter and is paid in the quarter incurred.
p.	P. Tucci desires to maintain a minimum cash balance of $30,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter; principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter.

Requirements 1. Prepare Tucci's operating budget and cash budget for 2025 by quarter. Required schedules and budgets include: sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budget. Manufacturing overhead costs are allocated based on direct labor hours. (Round all calculations to the nearest dollar.) 2. Prepare Tucci's annual financial budget for 2025, including budgeted income statement and budgeted balance sheet. 3. Tucci sold 6,000 sets in 2025, and its actual operating income was as follows: Tucci Toy Company Income Statement For the Year Ended December 31, 2025 Net Sales Revenue $ 420,000 Cost of Goods Sold: Variable $ 97,346 Fixed 36,608 133,954 286,046 Gross Profit Selling and Administrative Expenses: Variable 12,600 Fixed 73,600 86,200 199,846 Operating Income Other Income and (Expenses): Interest Expense (200) WE Wreporu Interest Expense (200) Income Before Income Taxes 199,646 Income Tax Expense 21,000 Net Income $ 178,646 Prepare a flexible budget performance report through operating income for 2025. Show product costs separately from selling and administrative costs. To simplify the calculations due to sets in beginning inventory having a different cost than those produced and sold in 2025, assume the following product costs: Variable Fixed Total Static budget $ 88,897 $ 38,808 $ 127,705 Flexible budget 96,146 38,808 134,954 4. What was the effect on Tucci's operating income of selling 200 sets more than the static budget level of sales? 5. What is Tucci's static budget variance for operating income? 6. Explain why the flexible budget performance report provides more useful information to Tucci's managers than the static budget performance report. What insights can Tucci's managers draw from this performance report? 7. During 2025, Tucci recorded the following cost data below. Compute the cost and efficiency variances for direct materials and direct labor. Standard Cost Information Cost Direct materials Quantity 7 pounds per set 0.30 hours per set $1 per pound Direct labor $14 per hour vaLL hau Ashan $14 per hour Direct labor 0.30 hours per set Variable manufacturing overhead 0.30 hours per set Fixed manufacturing overhead Static 0.30 hours per set budget amount: $38,808 $14 per hour $24.50 per hour Actual Cost Information Direct materials (41,800 pounds @ $1.30 per pound) $ 54,340 Direct labor (1,780 hours @ $14.10 per hour) 25,098 Variable manufacturing overhead (1,780 hours @ $13.60 per hour) 24,208 Fixed manufacturing overhead 36,608 8. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 9. Prepare the standard cost income statement for 2025