Doggone Groomers is in the dog-grooming business. Its operating costs are described by these formulas: Grooming supplies (variable) y = $0 + $4.00x Direct labour (variable) y = $0 + $12.00x Overhead (mixed) y = $8,000 + $1.00x Puli, the owner, has determined that direct labour is the cost driver for all three categories of costs. Instructions a) Prepare a flexible budget for activity levels of 550, 600, and 700 direct labour hours. b) Explain why the flexible budget is more informative than a static budget. c) Calculate the total cost per direct labour hour at each of the activity levels specified in part (a). d) The groomers at Doggone normally work a total of 650 direct labour hours during each month. Each grooming job normally takes a groomer 1 hours. Puli wants to earn a profit equal to 40% of the costs incurred. Determine what she should charge each pet owner for grooming. State total budgeted cost formula, and prepare flexible budget reports for two time periods