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 Total variable overhead Fixed costs: Supervisory salaries 96,000 Depreciation on factory equipment 140,000 40,000 24,000 32,000 Factory taxes Factory insurance Utilities (base charge) Total fixed overhead Total manufacturing overhead Factory supplies Indirect labor $48,000 72,000 36,000 144,000 Utilities (usage factor) Utilities (base factor) Patent royalties The cutting department was operated for 5,700 hours during September and incurred the following manufacturing overhead costs: $40,600 69,400 38,100 32,000 139,200 96,000 140,000 Factory taxes 43,600 Factory insurance 27,000 Total manufacturing overhead incurred $625,900 Supervisory salaries Depreciation on factory equipment $300,000 332,000 $632,000 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 5,700 hours, Patent royalties Supervisory salaries Depreciation on factory equipment 139,200 96,000 140,000 Factory taxes 43,600 Factory insurance 27,000 Total manufacturing overhead incurred $625,900 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 5,700 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 Variable costs: Factory supplies Indirect labor Utilities Patent royalties Total variable overhead Fixed costs: Supervisory salaries Depreciation on equipment $ Actual Costs 0 $ 0 OOO 0 0 0 0 OF 0 0 0 0 0 0 $ Factory taxes Factory insurance Utilities Total fixed overhead Total overhead costs $ Please answer all parts of the question. Budget (5,700 hours) 0 $ 0 OO 0 Variances 0 0 0 0 0 0 0 0 0 $ 0 0 0 0 0 0 00 RT FU KD KD 0 0 0