Bumblebee Company estimates that 370,000 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 Variable Overhead Costs Supervision $85,440 Indirect labor $170,200 Depreciation 76,200 Indirect materials 96,200 Repairs Insurance 28,320 51,800 20,400 Utilities Rent 55,500 Lubricants Property taxes 15,840 25,900 $226,200 $399,600 It is estimated that direct labor hours worked each month will range from 28,000 to 34,900 hours. During October, 28,000 direct labor hours were worked and the following overhead costs were incurred Fixed overhead costs: Supervision $7,120, Depreciation $6,350, Insurance $2,310, Rent $1,700, and Property taxes $1,320. Variable overhead costs: Indirect labor $13,860, Indirect materials, $6,850, Repairs $3,870, Utilities $4,600, and Lubricants $2,360. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 2,300 direct labor hours over the relevant range for the year ending December 31, 2017, (List variable costs before fixed costs.). Packaging Department Monthly Manufacturing Overhead Flexible Budget For the Year 2017 Activity Level 28000 34900 Direct Labor Hours Variable Costs Indirect Labor Indirect Materials Repairs Utilities Lubricants Total Variable Costs Fixed Costs Supervision Depreciation Insurance Rent Property Taxes Total Fixed Costs Total Costs (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 Direct Labor Hours Variable Costs Indirect Labor Unfavorable Favorable Indirect Materials Repairs Favorable Unfavorable Utilities Unfavorable Lubricants Unfavorable Total Variable Costs Fixed Costs Supervision Neither Favorable nor Unfavorable Depreciation Neither Favorable nor Unfavorable Favorable Insurance Rent Neither Favorable nor Unfavorable Property Taxes Neither Favorable nor Unfavorable Total Fixed Costs Favorable Unfavorable Total Costs