Instructions:

1. Prepare a monthly flexible manufacturing overhead budget for the expected range of activity, using increments of 1,000 direct labor hours.

2. Prepare a flexible budget report for Glenda for the month of July and provide possible reasons for the difference between the budgeted amount and the actual amount.

72. Coyote Company was flexible budget for manufacturing overhead based on direct labor hours. Vor 2022, the master overhead budget for the Packaging Department based on 400,000 direct labor hours was follow Variable Overhead Cast: Indirect labor $450,000 Supplies and labricants 160.000 Maintenance 240,000 Utilities 200.000 Total 51.000.000 Fixed Overhead Costs Depreciation 525.000 Supervision $ 60,000 Property taxes 25,000 Insurance Total $130,000 Glenda Expects to operate between 33,000 direct labor hours and 35,000 direct labor hours per month During July, 34,000 direct labor hours were worked. The company incurred the following variable overhead comes in July indirect labor $42.000, supplies and bricants $12.600.maintenance $17,000, and utilities $15,000. Actual fixed overhead costs were the same a monthly budgeted fixed costs Instructions: 1. Prepare a monthly flexible manufacturing overhead budget for the expected range of activity, using increments of 1.000 direct labor hours 2. Prepare a fleuible badget report for Glenda for the month of July and provide possible reason for the difference between the budgeted amount and the actual mount