Data P10.3 Harper Company assembles all of its products in the Assembly Department. Budgeted cost for the ration of this department for the year have been set as follows HARPER COMPANY Budget costs for Assembly Department: Variable costs: Direct materials $900,000 Direct labor 675.000 45,000 Utilities Indirect labor 67,500 Supplies 22,500 Total variable costs 1,710,000 Fixed costs: 8.000 nsurance Supervisory Salaries 90,000 Depreciation 160,000 42,000 Equipment rental 300.000 Total fixed costs Total budgeted costs Budgeted direct labor-hours 75,000 Part 3: Actual activities and costs: Actual direct labor-hours worked 73,000 Standard direct labor-hours allowed 70,000 Actual variable manufacturing overhead cost incurr $124,100 Actual fixed manufacturing overhead cost incurred 301,600 Since the assembly work is done mostly by hand, operating activity in this department is best measured by direct labor-hours. The cost formulas used to develop the budgeted costs above are valid over a relevant range of 60,000 to 90,000 direct labor-hours per year. Required 1. Prepare a manufacturing overhead flexible budget for the Assembly Department using increments of 15,000 direct labor-hours. (The company does not include direct materials and direct labor costs in the flexible budget.) 2. Assume that the company computes predetermined overhead rates by department. Compute the rates that will be used to apply Assembly Department overhead costs to production. Break this rate down into variable and fixed cost elements. 3. Notice the information labeled part 3 above. a. AT-account for manufacturing overhead costs in the Assembly Department for the year is given on the following answer sheet. Determine the amount of applied overhead cost for the year, and compute the under-or-over applied overhead. b. Analyze the under-or-overapplied overhead in terms of the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances