Gray Grantham, controller for Pelican Company, has been instructed to develop a flexible budget for overhead costs. The company produces two types of specialty coffee drinks: Caramel and Mocha. The two drinks use common raw materials in different proportions. The company expects to produce 225,000 gallons of each product during the coming year. Caramel requires 0.40 direct labor hours per gallon and Mocha requires 0.35 hours per gallon. Gray has developed the following fixed and variable costs for each of the four overhead items: Overhead Item Maintenance Power Indirect labor Rent Fixed Cost Variable Rate per DLH $72,000 $1.50 1.85 67,200 4.65 94,500 Required: Prepare an overhead budget for the expected activity level for the coming year. Prepare an overhead budget that reflects production that is 10% higher than expected (for both products). Assume this quantity is within the relevant range. Prepare an overhead budget that reflects production that is 10% lower than expected (for both products). Assume this quantity is within the relevant range