Specifically, you must address the following rubric criteria:

Statement of Cost of Goods Sold: Prepare the statement of cost of goods sold in the "COGS" tab of the workbook. Remember to show your

work using calculations to the side of the table or using appropriate formulas in the table.

Income Statement: Use the given revenue data to prepare the "Income Statement" tab table and calculate the net income. Remember to

show your work using calculations to the side of the table or using appropriate formulas in the table.

Variance Analysis: Prepare the data in the "Variances" tab to determine whether the variances are favorable or unfavorable. Remember to

show your work using calculations to the side of the table or using appropriate formulas in the table.

Complete the data table for the variances by entering the budgeted $($standard$)$ and actual labor and material values. Remember to use

the estimates for expected sales from your Milestone Two assignment.

Determine the variances for direct labor and direct materials in the "Variances" tab.

Evaluate the significance of the variances in the "Variances" tab, and mark them as favorable or unfavorable.

For your statement of cost of goods sold, use the following data regarding the actual costs incurred by

the business over the past month:

Materials purchased: $$20,000$

Consumed $80\%$ of the purchased materials

Direct labor: $$8,493$

Overhead costs: $$3,765$

Note: Assume that the beginning materials and ending work in process are zero for the month.

Use the following revenue and cost information for the income statement. Note that the revenue you

use will depend on the pricing level options you chose in Milestone Two. Also, assume that after

accounting for weekends and other holidays, there were $20$ business days in the first month of

operation. For example, if you chose a sales price of $$20$ per collar, the actual number of collars sold in

the month was $33$ per day or $3320=660$ per month.

The other costs incurred by the business include:

General and administrative salaries

Receptionist: $$1,950$

Office supplies: $$200$

Other business equipment: $$150$