Asper Company has recently introduced budgeting as an Integral part of its corporate planning process. An Inexperienced member of the accounting staff was given the assignment of constructing a flexible budget for manufacturing overhead costs and prepared It In the format that follows: Percentage of Capacity Machine-hours 80% 44,00 100% 55, eee Utilities Supplies Indirect labour Maintenance Supervision $ 48,600 4,400 8,888 36,6ee 15,000 $ 58,500 5,500 11,000 41.mee 15, eee Total manufacturing overhead cost $ 113,488 $ 131,eee The company assigns manufacturing overhead costs to production on the basis of standard machine-hours. The cost formulas used to prepare the budgeted figures above are relevant over a range of 80% to 100% of capacity in a month. The managers who will be working under these budgets have control over both fixed and variable manufacturing overhead costs. Required: 1. Use the high-low method to separate fixed and variable costs. (Round variable cost answers to 2 decimal places.) Overhead Item Variable Component Fixed Component Utilities Supplies Indirect labour Maintenance Supervision Totals s 0.00 $ 3. During May, the company operated at 87% of machine-hour capacity. Actual manufacturing overhead costs incurred during the month were as follows: Utilities Supplies Indirect labour Maintenance Supervision $ 50,140 6,850 10,699 34,418 15, eee Total actual manufacturing overhead cost $117, 090 Fixed costs had no budget varlances. Prepare an overhead performance report for May. Include both fixed and variable costs in your report (In separate sections). Structure your report so that it shows only a spending variance for variable overhead. The company originally budgeted to work 44.000 machine-hours during the month; standard hours allowed for the month's production totalled 45,000 machine-hours. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance). Round "Cost Formula per MH" answers to 2 decimal places.) Overhead Costs Cost Formula per MH Actual Cost 47,850 MH Flexible Budget 47,850 MH Spending Variance Variable overhead costs: 0.00 Total variable overhead cost Fixed overhead costs: Overhead Costs Cost Formula per MH Actual Cost 47,850 MH Flexible Budget 47,850 MH Spending Variance Variable overhead costs $ 0.00 0 Total variable overhead cost Fixed overhead costs: Total fixed overhead cost 0 0 Total overhead cost $ 0 $ 0