Flexible Budget and Standard Cost The information below relates to Burlington Manufacturing, Inc. This company manufactures a Single product and uses a standard cost system. The accounting department is responsible for preparing flexible budgets and variance analysis Factory overhead is applied on the basis of direct Labor hours. Budget Information The standard unit cost was based on budgeted volume of 10,000 units. Each unit of product calls for 3.0 lbs. of materials with a budget cost of dollar 5.00 per pound. Each unit also requires 2 hours of direct labor at a standard rate of SI 0 per hour. Factory overhead is applied to production on the basis of direct labor hours The budget allows 2 hours per unit at rate of dollar 1.25 per hour variable and dollar 4 50 per hour fixed. The budgeted sales price per unit is dollar 80 00