In Tasmania Manufacturing's costing system, both variable and fixed manufacturing overhead are allocated to products based on standard direct manufacturing labour-hours (DLH). The company had the following standards for its manufacturing costs for 2020:- Direct materials Input- Cost per output unit 3.5 kg at $5 per kilogram- $17.50- 5.5 hours at $15 per hour: $82.5.00- + 2 t Direct manufacturing labour- Manufacturing overhead Variable Fixed Standard manufacturing cost per output unit: $6 per DLH $8 per DLH $33.00- $44.00 $177.00- 2 + Budgeted annual production for 2020 was 96,000 units. The denominator level for total manufacturing overhead per month in 2020 is 44,000 direct manufacturing labour-hours, and the flexible budget for July 2020 was based on this denominator level. The records for July indicated that the actual production was 7,500 units and shows the following: Direct material purchased 25,000 kg at $5.20 per kg. Direct material used 23,500 kg Direct manufacturing labour 40,200 hours at $14.60 per hour Variable manufacturing overhead incurred $250,000. Fixed manufacturing overhead incurred $320,000w Required + a. Prepare a performance report showing the Flexible Budget Variances for July 2020. [5 marks)- Identify two potential ethical dilemmas that might surface in the use of flexible budgeting forperformanceevaluation [3 marks] t C. For the month of July 2020, calculate the following variances, indicating whether each is favourable (F) or unfavourable (U).- i. Direct material price and efficiency variances [1 mark] ii. Direct manufacturing labour rateand efficiency variances [1 mark) t iii. Variable manufacturing overhead spending and efficiency variances [1 mark] iv. Fixed manufacturing overhead spending and volume variances- [1 mark]