Based on your income statement, logically interpret the businesss performance against the provided benchmarks. Did the company do as well as expected? Explain what happened.

Milestone Three - Income Statement
Revenue:
Collars	$ 13,200
Leashes	12,320
Harnesses	12,500
Total Revenue:		$ 38,020
Cost of goods sold		28,258
Gross profit		$ 9,762
Expenses:
General and administrative salaries	$ 1,950
Office supplies	200
Other business equipment	150	$ 2,300.00
Total Expenses		$ 5,715.00
Net Income/Loss		$ 4,047.00

Illustrate the variances observed between the planned and actual values for the direct labor time and the direct materials price for collars. What changed?]

Milestone Three - Variance Analysis
Data for Variance Analysis:
	Budgeted (Standard) Hours/Qty	Budgeted (Standard) Rate	Actual Hours/Qty	Actual Rate
Labor	160	$ 16.00	180	$ 16.50
Materials	660	$ 9.10	720	$ 10.00
Variances for Collar Sales
			Variance	Favorable/ Unfavorable
Direct Labor Time Variance
(Actual Hours - Standard Hours) x Standard Rate	$ 320.00	Unfavorable
Direct Labor Rate Variance
(Actual Rate - Standard Rate) x Actual Hours		$ 90.00	Unfavorable
Direct Materials Quantity/Efficiency Variance
(Actual Quantity - Standard Quantity) x Standard Price	$ 546.00	Unfavorable
Direct Materials Price Variance
(Actual Price - Standard Price) x Actual Quantity		$ 648.00	Unfavorable