Our initial plan was to make and sell $500$ wrenches. We budgeted $2$ lbs$.$ of steel for each wrench,and expected to pay $$1\mathrm{.}50$ per pound for the steel. We budgeted $$20$ per hour for labor, and expected it to take$3$ hours to make each tool. Our initial plan was to sell the $500$ wrenches for $$120$ each.We budgeted $$8000$ for insurance $($fixed overhead$),$ and we decided to use labor hours as the driver forallocating utilities costs $($variable overhead$).$ We expected to have $$12,000$ in utilities costs.FLEXIBLE BUDGETPrepared after$-$the$-$fact, using actual quantity of sales, and the Variable OH Application rate determined with Master Budget.ACTUAL RESULTS$(1)$ We receive an order for $550$ units at $$125\mathrm{.}00$ each$(2)$ We purchase $1,400$ lbs$.$ of materials., paying $1,960\mathrm{.}00,$ or $$1\mathrm{.}40$ per lb$.(3)$ We drawdown $1250$ lbs$.$ materials to produce $550$ wrenches $.(4)$ We drawdown $($pay$)$ $$21\mathrm{.}00$ hr$.$ for $1640$ hours of labor to produce the $550$ wrenches.$(5)$ We incur variable overhead expenses $($ex$.-$ utilities$)$ of $$11,890\mathrm{.}00.(6)$ Fixed overhead $($insurance$)$costs are $$7,800.$ Fixed overhead is deemed to be a period expense.$(7)$ We sell all $550$ units at $$125$ each.

 $($submit using the formatted statements shown on Sheet $2$ of this EXCEL file$)$Prepare in good order $($in the space provided$)$ a Master Budget Income Statement.Prepare in good order $($in the space provided$)$ a Flexible Budget Income Statement, based on actual production.Prepare in good order $($in the space provided$)$an Actual Results Income Statement.