Refer to the information in Problem 23-3B. Tohono Company€™s actual income statement for 2013 follows.

Required
1. Prepare a flexible budget performance report for 2013. Analysis Component
2. Analyze and interpret both the
(a) Sales variance
(b) Direct materialsvariance.

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TOHONO COMPANY Statement of Income from Operations For Year Ended December 31,2013 Sales (24,000 units).. Cost of goods sold .. $3,648,000 $1.400,000 Direct materials Direct labor.. Machinery repairs (variable cost).... Depreciation machinery. Utilities (variable cost, $64.000)..218.000 Plant manager salaries.. 360,000 60,000 250,000 155,000 2,443,000 Gross profit. Selling expenses 1.205,000 Packaging... 90,000 General and administrative expenses Advertising expense Salaries 04,000 232,000 00,000 436,000 393,000 Entertainment expense . .. Income from operations....