I. Flexible Budget and computation of Overhead Rate Below are the expected manufacturing overhead cost behavior patterns for the coming accounting period. The company uses direct labor hours to apply overhead to products Standard call for 2 direct labor hours per unit of output. Fixed Costs Variable Costs per unit 0.1 Cafeteria for the manufacturing plant Depreciation, manufacturing plant Employee benefits Factory insurance Factory property taxes Factory utilities First aid room Indirect labor Indirect material Maintenance Manufacturing supervisory salaries Rent for manufacturing plant 12,000 20,000 7,000 6,000 16.000 15,000 9,000 8,000 2,000 6,000 75,000 24,000 200,000 0.4 0.01 0 0.08 0.02 0.25 0.1 0.04 Required: a. Prepare a manufacturing overhead flexible budget using 200,000, 250,000, and 300,000 direct labor hours as the budgeted activity levels. b. Assuming a normal capacity of 125,000 units, compute the manufacturing overhead rate