Maintenance $90,000 Depreciation Required Prepare a flexible budget in increments of 5,000 machine-hours. Include all costs in your budget. E13-5 Time allowed: 20 minutes The variable portion of Murray Company's flexible budget for manufacturing overhead is given below: Machine-hours Cost formula 10,000 12,000 14,000 Variable overhead costs (per machine-hour) E0.20 L2,000 $2,400 $2,800 Supplies 0.80. 8,000 9,600 11,200 Maintenance 1,000 1,200 0.10 1,400 Utilities 4,000 4,800 Rework time 0.40 5,600 Total variable overhead cost E1.50 $15,000 (18,000 C21,000 During a recent period, the company recorded 11,500 machine-hours of activity. The variable overhead costs incurred were: Supplies $2,400 Maintenance 8,000 Utilities 1,100 Rework time 5,300 The budgeted activity for the period had been 12,000 machine-hours. Required 1 Prepare a variable overhead performance report for the period. Indicate whether variances are favourable (F) or unfavourable (U). Show only a spending variance on your report. 2 Discuss the significance of the variances. Might some variances be the result of others? Explain. E13-6 Time allowed: 15 minutes ecent year is given below