Flexible Budget. (CPA, adapted) The Panhandle Corporation operates its production departments under a flexible budget with monthly allowances established for 20% intervals. Capacity is based on direct labor hours with 2,500 direct labor hours representing 100% normal capacity. < In the month of October the Shelving Department operated at the 87% level. The exhibit shows budget allowances at the 80% and 100% levels. < Flexible Budget < < Percentage of Capacity Direct labor hours Direct labor costs 80% 100% 2,000 2,500 $4,000 $5,000 < Foreman's salary.. .$ 500 $ 500 < Indirect labor.. 1,350 1,500 Clerical salaries.. 700 750 < Depreciation... Factory supplies.. Taxes..... 430 500 < 500 500 250 250 < Insurance.. Maintenance... 400 < Power 200 200 < 380 360 < Factory overhead rate < Total indirect expenses $4,670 $2.335 Required: A detailed flexible budget for the 87% level. < 400+ $5,000 $2.00