Why is it important to analyze individual items of variable factory overhead? 2 A portion of a departmental performance report for variable overhead prepared on a flexible budget basis is shown below: Maintenance Ubities Budget Actual Varance $10,000 10,000 $5,000 15,000 $5.000 F 5.000 U . The supervisor was heard to say. "Everything else was within 1 or 2 percent of budget, and the maintenance and utilities variances offset each other. So there's no problem." Do you agree with that statement? Explain.