As the world reports on inflation, companies are taking steps to adjust their prices and manage their resources. Citizens are worried that prices will increase to a level that is difficult. Atten'tive Corporation is a private corporation formed since 2000 for the purpose of selling products to local and regional economies. The government has consulted with Attentive for assistance with providing cheaper product options. As at January 2005, they switched to Activity Based Costing System and has been using it ever since. Due to the switch in costing methods, Atten'tive Company used multiple cost drivers, which has a direct cause/effect relationship in its applied overhead costs. This method allows for a better accounting of costs, which may invariably have transferred out and therefore reduce some manufacturing costs. The Chief Operating Officer held a meeting with all Department Heads on their operational budgets and to present a cash flow position of the company among other schedules. All management personnel have to prepare reports and schedules, based on their department and operational functions. The objective is to determine operational deficiencies and how they can reduce cost to meet customers' budget, while making a profit. An analysis of the reports will be circulated at the end of the month.The following data was reported in an interim memo: Attentive Corporation provided their expected annual manufacturing budget for 2022 - 120,000 Direct Labour Hours. I heir payments budget projections show that for April $300,000, May $500,000 and June $200,000. Client Collections - April: $312,500, May: $371,000 and June: $890,000. The company has a desired ROI of 40% and it has invested $3,000,000 in assets. They are being conservative on their spending therefore Atten'tive Company has a policy to maintain a cash budget balance of $100,000. Any financing received from First Regional Bank is at an interest rate of 11%. During the year, Attentive Company sold 696,000 units at an average selling price of per unit $4.20 per unit.Attentive Manufacturing Company provided their annual manufacturing overhead budget for its Master Budget for 2022. The details were captured below: Variable overhead costs Indirect labor $600,000 Indirect materials 120,000 Factory supplies 60,000 Total variable 780,000 Fixed overhead costs Depreciation 240,000 Supervision 120,000 Property taxes 96,000 Total fixed 456,000 Total costs $1.236.000 The relevant range for monthly activity is expected to be between 8,000 and 12,000 direct labor hours. Required: (a) Prepare a flexible budget for a monthly activity level of 8,000 and 9,000 direct labor hours only. (b) You have been awarded a project to start in the next six months. One of your tasks is to determine a budget based on the scope of works provided. State four (4) benefits of Budgeting to Management