5P13.39A (L!) 1, g) Doggone Groomers is in the dog-grooming business. Its operating costs are described by these formulas: Grooming supplies (variable) y = $0 + $4.00); Direct labour (variable) y = $0 + $12.00); Overhead (mixed) y = $8,000 + $1.00x Puli, the owner, has determined that direct labour is the cost driver for all three categories of costs. Instructions a. Prepare a exible budget for activity levels of 550, 600, and 700 direct labour hours. a. Total cost: 550 units, $17,350; 600 units, $18,200; 700 units, $19,900 b. Explain why the exible budget is more informative than a static budget. c. Calculate the total cost per direct labour hour at each of the activity levels specied in part (a). c. Total cost per hour: 550 units, $31.55; 600 units, $30.33; 700 units, $28.43 d. The groomers at Doggone normally work a total of 650 direct labour hours during each month. Each grooming job normally takes a groomer 11/4 hours. Puli wants to earn a prot equal to 40% of the costs incurred. Determine what she should charge each pet owner for grooming. d. $51.28 State total budgeted cost formula, and prepare exible budget reports for two time periods