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 $48,000 Indirect labor 72,000 Utilities (usage charge) 36,000 Patent royalties on secret process 144,000 Total variable overhead $300,000 Fixed costs: Supervisory salaries 96,000 Depreciation on factory equipment 140,000 Factory taxes 40,000 Factory insurance 24,000 Utilities (base charge) 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 $40,400 Indirect labor 67,200 Utilities (usage factor) 38,100 Utilities (base factor) 32,000 Patent royalties 134,000 Supervisory salaries 96,000 Depreciation on factory equipment 140,000 Factory taxes 43,400 Factory insurance 27,000 Total manufacturing overhead incurred $618,100 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. 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 Actual Costs (5,500 hours) Variances 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 $ $ $