Waterway Company's actual results reveal that it was profitable in the sale of its star product: a high$-$end spot$-$cleaning vacuum for

upholstery. But it was not nearly as profitable as management had hoped. Waterway's actual income statement and master budget

income statement are as follows. In order to keep the focus on product costs, SG&A costs were omitted.

Here are the company's standard cost cards for each product cost.

$($a$)$

Prepare a flexible budget for Waterway Company so management can evaluate the company's actual performance using a more

appropriate benchmark.