2. Cost of Production and Flexible Budget Jane's next task was to prepare a flexible budget that could later be used to prepare a budgeted income statement and would also help Brad tell whether actual expenditures were as they should be. She decided to use the format shown in the variable budget table below. On the left, she would write in the cost formula, which would show how much should be spent on each item for any given production volume. Then she would fill in the amounts for the volume of production she had projected for the first three months of the coming year. Projected number of units produced January February March Cost Formula Cost Item Materials used Direct labor Indirect labor Electricity Indirect materials Factory insurance Other overhead Depreciation Total cost Cost per unit Required: Prepare a flexible expense budget using the format shown in the variable budget table above. 2. Cost of Production and Flexible Budget Jane's next task was to prepare a flexible budget that could later be used to prepare a budgeted income statement and would also help Brad tell whether actual expenditures were as they should be. She decided to use the format shown in the variable budget table below. On the left, she would write in the cost formula, which would show how much should be spent on each item for any given production volume. Then she would fill in the amounts for the volume of production she had projected for the first three months of the coming year. Projected number of units produced January February March Cost Formula Cost Item Materials used Direct labor Indirect labor Electricity Indirect materials Factory insurance Other overhead Depreciation Total cost Cost per unit Required: Prepare a flexible expense budget using the format shown in the variable budget table above