Al-Jannah Bhd is a manufacturer of product based on goat milk. The management of the company employs flexible budgeting techniques to compare the firm's budgeted and actual factory overhead cost. Following is the information on budgeted and actual cost for January 2013: Since the management emphasizes on product quality, supervision and variable inspection costs are expected to increase by 5% and 10% respectively in year 2013. However, these changes have not been incorporated in the above budget. Required: a. Calculate variable cost per hour and fixed cost for each of the overhead cost. b. Prepare performance report for January 2013. c. Identify three advantages of flexible budget