FLEXIBLE BUDGET, OVERHEAD VARIANCES ACTVIYY FLEXIBLE BUDGET Cablowia Company provided information on the following four overtead activities Coblocia has found that the following diver levels are associated with two different levels of production. Required 1. Prepare an activity-based flexible budget 2Marks QUESTION THREE OVERHEAD APPLICATION, FIXED AND VARIABLE OVERHEAD VARIANCES Jules Company is planning to produce 2,400,000 power drills for the coming year. The company uses direct labour hours to assign overhead to products. Each dnill requires 0.5 standard hour of labour for completion. The total budgeted overhesd was $2,700,000. The total fixed cverhead budgeted for the coming year is $1,320,000 Predetermined overhead rates are coloulated using expected production. measured in difect labour hours. Actual results for the year are 1. Compute the spplied fixed overhead. 4 Marks 2. Compute the fixed overhead spending and efficiency variances. 5 Marks 3. Compute the applied variable overhead. 4 Marks 4. Compute the variable overhesd spending and volume variances. 5 MARKS