2 (Flexible Budgets) 20 Marks The manufacturing overhead budget for Reebles has the following items: Variable costs Indirect materials Indirect labour Maintenance Manufacturing supplies Total variable costs Styles $25,000 $12,000 $10,000 $6,000 $53,000 Fixed costs Supervision Inspections Insurance Amortization Total fixed costs $17,000 $1,000 $2,000 $15,000 $35,000 The budget was based on an estimated production of 2,000 units. During November, 1,500 units wer the following costs were incurred: Variable costs Paragraph Total fixed costs Styles $35,000 The budget was based on an estimated production of 2,000 units. During November, 1,500 units were produced, and the following costs were incurred: Variable costs Indirect materials Indirect labour Maintenance Manufacturing supplies Total variable costs Fixed costs Supervision Inspections $25,200 $13,500 $8,200 $5,100 $52,000 $19,300 $1,200 Insurance $2,200 Amortization $14,700 Required: a) Prepare a flexible manufacturing overhead budget and the actual manufacturing overhead report for month ended November b) Determine the difference in total variable costs, total fixed costs and total costs c) Determine the differences between budgeted and actual costs. (Budget Variances) d) Identify the variances as favourable or unfavourable