Flexible Budget Application The cutting department of Liberty Manufacturing Company operated during September 2016 with the following manufacturing overhead cost budget based on 6,000 hours of monthly productive capacity: Liberty Manufacturing Company Cutting Department Overhead Budget (6,000 Hours) For the Month of September 2016 Variable costs: Factory supplies Indirect labor Utilities (usage charge) Patent royalties on secret process $48,000 72.000 36,000 144,000 Total variable overhead 5300,000 Fixed costs: Supervisory salaries Depreciation on factory equipment Factory taxes Factory insurance Utilities (base charge) 96,000 140,000 40,000 24,000 32.000 Total fixed overhead 332,000 Total manufacturing overhead $632,000 The cutting department was operated for 5,500 hours during September and incurred the following manufacturing overhead costs: Factory supplies Indirect labor Utilities (usage factor) Utilities (base factor) Patent royalties Supervisory salaries Depreciation on factory equipment Factory taxes Factory insurance $40,400 67,200 38,100 32.000 134.000 96,000 140,000 43,400 27.000 $618,100 Total manufacturing overhead incurred Using a flexible budgeting approach, prepare a performance report for the cutting department for September 2016, comparing actual overhead costs with budgeted overhead costs for 5,500 hours Separate overhead costs into variable and fixed components and show the amounts of any variances between actual and budgeted amounts Do not use negative signs with your answers below Do not round until your final answer. Round answers to nearest whole number, if applicable. Select either U for Unfavorable or F for Favorable using the drop down box next to each of your variance answers Do not use negative signs with your answers below. Do not round until your final answer. Round answers to nearest whole number, if applicable. Select either U for Unfavorable or F for Favorable using the drop down box next to each of your variance answers Liberty Manufacturing Company Polishing Department Performance Report- Manufacturing Overhead For the Month Ended September 30, 2016 Budget (5,500 hours) Actual Costs Variable costs: Factory supplies Indirect labor Utilities Patent royalties Total variable overhead Fixed costs: Supervisory salaries Depreciation on equipment Factory taxes Factory insurance Utilities Total fixed overhead Total overhead costs