Milo Clothing Company produces men's ties since 1995. In order to reasonably plan and dosely control their manufacturing costs, they use the budgeting system. The following budgeted and actual amounts are released to top management for 2020 and they asked you, a cost accountant, to prepare a performance budget report so that they can analyze all type of variances including both favourable and unfavourable. Cost Direct materials Direct labour. Equipment depreciation Indirect labour. Indirect materials Rent and insurance Instructions: Budget at 4,000 Units $185,000 226,000 6,000 22,000 14,000 35,000 Actual Amounts at 4,500 Units $188,000 250,000 6,000 25,000 16,000 35,000 Prepare a flexible budget report for Milo Clothing Company for the year. Provide full calculation steps for a full mark. (15 marks) Cost Direct materials Direct labout Equipment depreciation Indirect labour Indirect materials Rent and insurance Budgeted costs at 4,000 units $185,000 226,000 6,000 22,000 14,000 35,000 Variance Flexible Budget Variance Actual costs at 4,500 units $188,000 250,000 6,000 25,000 16,000 35,000 b. What is the flexible budget and its advantages? In addition, briefly explain how the flexible budget is prepared. (10 marks)