Req. 3 please use the formulas provided below for

Requirement 3 (25 points) a. Calculate the standard cost per unit for direct materials and standard rate per unit for direct labor. (The formulas are given above next to the "Direct Materials and "Direct Labor" items. The standard costs that you calculate are the amounts you will use for your flexible budget for each of these costs). b. Prepare a flexible production budget including Revenues, Total Variable Costs, Total Fixed Costs, Total Costs and Net Income, for the three levels of activity (number of units to break even, number of units to achieve a S25,000 profit, number of units to achieve a $40,000 profit). The CEO is convinced of the Director of Sales' ability to achieve a profit of $40,000 a month and reports those costs on the company's static budget. However, actual sales for the first month were 12,900 units. The actual revenues and expenses for the month were: VARIABLE COSTS (per unit) Sales: 237,457 Direct Materials: Direct Labor: Indirect Materials: Indirect Labor: Utilities for Factory: Supplies for Factory: Variable Administrative Salaries Variable Sales Commissions: $15,200 $58,050 $1,305 $2,200 $8,900 $ 1,925 $9,702 $14,760 FIXED COSTS (per month) Factory Supervisor Salaries: Factory Depreciation: Property Taxes (Factory): Insurance (Factory): Maintenance (Factory): Fixed Sales Salaries Depreciation, Sales Equip. Advertising $43,000 S15,500 $4,500 $3,500 $1,860 $10,000 S12,250 $5,720 Variable Costs (per unit) Direct Materials: The standard materials quantity and cost for each unit is 3 pounds per unit at a cost of $.50 per pound. Direct Labor: The standard activity and wage rate is 20 minutes per product at a rate of $12.00 per DL hour