225.1A Prepare flexible budget and budget report for manufacturing overhead Bumblebee Company estimates that 300,000 direct labor hours will be worked during the coming year, 2020, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data, shown below, are computed for the year. Fixed Overhead Costs Supervision $96,000 Depreciation 72,000 Insurance 30,000 Rent 24,000 Property taxes 18.000 $240.000 Variable Overhead Costs Indirect labor $126,000 Indirect materials 90,000 Repairs 69,000 Utilities 72,000 Lubricants 18.000 $375,000 It is estimated that direct labor hours worked each month will range from 27,000 to 36,000 hours. During October 27,000 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: supervision $8,000, depreciation $6,000, insurance $2,460, rent $2,000, and property taxes $1,500. Variable overhead costs: Indirect labor $12,432, indirect materials $7,680, repairs $6,100, utilities $6,840, and lubricants $1,920. Instructions (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,000 direct labor hours over the relevant range for the year ending December 31, 2020. (b) Prepare a flexible budget report for October (c) Comment on management's efficiency in controlling manufacturing overhead costs in October. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,000 direct labor hours over the relevant range for the year ending December 31, 2020 BUMBLEBEE COMPANY Packaging Department Monthly Manufacturing Overhead Flexible Budget For the Year 2020 Activity level Direct labor hours 27.000 30,000 33.000 36.000 Variable costs Indirect labor ($0.42) Indirect materials ($0.30) Repairs ($0.23) Utilities ($0.24) Lubricants ($0.06) Total variable costs ($1.25) ? ? ? 2 ? 2 ? ? ? ? ? ? 2 ? ? ? ? ? ? ? ? ? ? ? Fixed costs Supervision Depreciation Insurance Rent Property taxes Total fixed costs ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 2 ? ? ? 2 ? ? Total costs ? (b) Prepare a flexible budget report for October BUMBLEBEE COMPANY Packaging Department Manufacturing Overhead Flexible Budget Report For the Month Ended October 31, 2020 Difference Budget at Actual Costs Favorable F Direct labor hours 27,000 DLH 27,000 DLH Unfavorable U Variable costs Indirect labor ($0.42) ? Value ? Indirect materials ($0.30) ? Value ? Repairs ($0.23) ? Value ? Utilities ($0.24) ? Value ? Lubricants ($0.06) ? Value ? Total variable costs ($1.25) ? ? ? Fixed costs Supervision Depreciation Insurance Rent Property taxes Total fixed costs Value Value Value Value Value ? Value Value Value Value Value ? ? ? ? ? ? Total costs ? ? ? (c) Comment on management's efficiency in controlling manufacturing overhead costs in October Response