5. (6 points) The following budget information relates to Mercedes Benz Corporation Variable manufacturing overhead costs per machine hour are as follows: $7.30 3.55 Indirect Labor Indirect Materials 97 53 Maintenance Utilities Fixed overhead costs per month are: $900 500 Supervision Insurance 600 300 Property Taxes Depreciation The normal operating range is 6,000 to 10,000 machine hours per month. INSTRUCTIONS Mercedes-Benz would like a flexible manufacturing overhead budget prepared based on machine hours. Given the range of activity above, prepare the budget using increments of 2,000 machine hours. 6. (6 points) The Olive Garden Division, a part of the Darden Corporation, reported the following data for the first quarter of 2019: Budget Actual $ 900, 000o Sales Revenue Cost of Goods Sold 300,000 100,000 Variable 290,000 120,000 Controllable Fixed Selling and Administrative Variable 200,000 150,000 210,000 170,000 Controllable Fixed 50,000 $2,200, 000 Other fixed costs 40,000 $2,400, 000 Average operating assets INSTRUCTIONS Assuming that Olive Garden is an investment center, prepare a responsibility performance report for the manager of this division. Mercede-Benz Corporation Monthly Flexible Manufacturing Overhead Budget Activity level Machine hours Darden Corporation Olive Garden Responsibility Report For the Quarter Ended March 31, 2019 Difference Favorable F Actual Unfavorable U