Bumblebee Company estimates that 366,700 direct labor hours will be worked during the coming year, 2017, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data are computed for the year. Fixed Overhead Costs Supervision Depreciation Insurance Rent Property taxes $90,000 75,240 31,320 27,000 13,200 $236,760 Variable Overhead Costs Indirect labor $168,682 Indirect materials 102,676 Repairs 73,340 Utilities 55,005 Lubricants 18,335 $418,038 It is estimated that direct labor hours worked each month will range from 29,200 to 39,700 hours. During October, 29,200 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,500, Depreciation $6,270, Insurance $2,585, Rent $2,250, and Property taxes $1,100. Variable overhead costs: Indirect labor $14,472, Indirect materials, $7,796, Repairs $5,800, Utilities $4,820, and Lubricants $1,850. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,500 direct labor hours over the relevant range for the year ending December 31, 2017. (List variable costs before fixed costs.) BUMBLEBEE COMPANY Packaging Department Monthly Manufacturing Overhead Flexible Budget For the Year 2017 (b) Prepare a flexible budget report for October. (List variable costs before fixed costs.) BUMBLEBEE COMPANY Packaging Department Manufacturing Overhead Flexible Budget Report For the Month Ended October 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs