Exercise 25-04 a-b Crane Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.00 Indirect materials 0.50 Utilities 0.30 Fixed overhead costs per month are Supervision $3,500, Depreciation $1,000, and Property Taxes $500. The company believes it will normally operate in a range of 5,500- 8,500 direct labor hours per month. Assume that in July 2020, Crane Company incurs the following manufacturing overhead costs. Variable Costs Indirect labor Indirect materials Utilities $7,300 3,650 1,850 Fixed Costs Supervision Depreciation Property taxes $3,500 1,000 500 (a) Prepare a flexible budget performance report, assuming that the company worked 7,500 direct labor hours during the month. (List variable costs before fixed costs.) CRANE COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 Difference Favorable Unfavorable Neither Favorable Budaot ActualCosta por Infavorable Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs (b) Prepare a flexible budget performance report, assuming that the company worked 7,000 direct labor hours during the month. (List variable costs before fixed costs.) CRANE COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 Difference Favorable Unfavorable Neither Favorable Budget Actual Costs nor Unfavorable