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 Factory supplies Indirect labor Uslices (utage charge) $48.000 72,000 36.000 Patent royalties on secret process 144,000 Total variable overhead Fixed costs Supervisory salanes 56.000 Depreciation on factory equipmere 140.000 Factory insurance Uses (base charge) Total fixed overhead Total manufacturing overhead $300,000 40,000 24.000 12.000 332.000 1632,000) The cutting department was operated for 5,460 hours during September and incurred the following manufacturing overhead costs Factory supplies Indirect labor $40.800 67.600 Utes usage factor 38,100 Use factor 32.000 Patent royalties 134,400 Supervisory salaries 96.000 Depreciation on factory equipment 140,000 Factory taxes 41.800 Factory insurance 27.000 Total manufacturing overhead incurred $619,700 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 5,460 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. Liberty Manufacturing Company Polishing Department Performance Report Manufacturing Overhead For the Month Ended September 30, 2016 supples Indirect labor Ucities Patent royalties Total variable overhead Supervisory salaries Depreciation on equipment Factory taxes Factory insurance Uties Total fixed overhead Total overhead costs Actual Costs Budget (5,460 hours) Variances