Based on these comments, explain how this additional information may help Eastend to better manage its costs. Also, assuming that these are the only three items, expand the detail of the flexible budget for materials handling to reveal the cost of these three resource items for 20,000 moves and 40,000 moves, respectively. You may wish to review the concepts of flexible, committed, and discretionary resources found in Chapter 3. QUESTION TWO FLEXIBLE BUDGET, OVERHEAD VARIANCES Comfy Feet Company manufactures a line of high-end slippers. At the beginning of the year, the following plans for production and costs were revealed: During the year, a total of 50,000 units were produced and sold. The following actual costs were incurred: There were no beginning or ending inventories of raw materials. In producing the 50,000 units, 63,000 hours were worked, 5 percent more hours than the standard allowed for the actual output. Overhead costs are applied to production using direct labour hours. Required: 1. Using a flexible budget, prepare a performance report comparing expected costs for the actual production with actual costs. 2. Determine the following: a. Fixed overhead spending and volume variances. b. Variable overhead spending and efficiency variances