Indigo Company estimates that 360,000 direct labor hours will be worked during the coming year, 2022, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year. Fixed Overhead Costs Variable Overhead Costs Supervision $115,200 Indirect labor $151,200 Depreciation 86,400 Indirect materials 108,000 Insurance 36,000 Repairs 82,800 Rent 28,800 Utilities 86,400 Property taxes 21,600 Lubricants 21,600 $288,000 $450,000 It is estimated that direct labor hours worked each month will range from 31,600 to 44,800 hours. During October, 31,600 direct labor hours were worked, and the following overhead costs were incurred. Fixed overhead costs: supervision $9,600, depreciation $7,200, insurance $2,948, rent $2,400, and property taxes $1,800. Variable overhead costs: indirect labor $14,905, indirect materials $9,224, repairs $7,122, utilities $8,192, and lubricants $2,296. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 4,400 direct labor hours over the relevant range for the year ending December 31, 2022. (List variable costs before fixed costs.) INDIGO COMPANY Packaging Department Monthly Manufacturing Overhead Flexible Budget For the Year 2022 $ $ $ $ > > > > > > > > > $ $ $ $ (b) Prepare a flexible budget report for October. (List variable costs before fixed costs.) INDIGO COMPANY Packaging Department Manufacturing Overhead Flexible Budget Report Budget Actual Costs Difference Favorable Unfavorable Neither Favorable nor Unfavorable