ambane inanger in increments of o machine-hours. Include all ensts in your badget Time allowed 20 minores The vartable portion of Murray Company's flexible budget for anamfacturing overhead la girm below Varlable overhead costs Cost formula (per machine hour) Machine-hours 10,000 12,000 14,000 Supplies 0.20 2,000 2,400 2.800 Maintenance 0.80 8,000 4,600 11,200 Utilities Rework time Total variable overhead cost 0.10 1,000 1,200 1,400 0.40 4,000 4,800 5,600 1.50 15,000 18.000 21,000 During a recent period, the company recorded 11,500 machine-hours of activity. The variable overbend costs incurred were: Supplies Maintenance Ulities Rework time 2,400 8.000 1,100 5.300 The budgeted activity for the period had been 12,000 machine-hours. Required 1 Prepare a variable overhead performance report for the period. Indicate whether variances are favourable (F) or unfavourable (U). Show only a speading variance on your report. 2 Discuss the significance of the variances. Might some variances be the result of others? Explain. Time allowed. 15 minutes Selected information relation to Your Counanih operations for the most recent wear is given below