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P22-2B Gonzalez Company produces one product, Olpe. Because of wide fluctuations in demand for Olpe, the Assembly Department experiences significant variations in monthly production levels. The annual master manufacturing overhead budget is based on 300,000 direct labor hours. In July, 27,500 labor hours were worked. The master manufacturing overhead bud- get for the year and the actual overhead costs incurred in July are as follows. Master Budget Actual Overhead Costs (annual) in July Variable Indirect labor $300,000 $26,000 Indirect materials 150,000 11,350 Utilities 90,000 8,050 Maintenance 60,000 5,400 Fixed Supervision 144,000 12.000 Depreciation 96,000 8.000 Insurance and taxes 60,000 5,000 Total $900,000 $75,800 Instructions (a) Prepare a monthly flexible overhead budget for the year ending December 31, 2017, assuming monthly production levels range from 22,500 to 30,000 direct labor hours. Use increments of 2.500 direct labor hours