Outkast Company uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour is as follows: Budgeted fixed overhead costs per month are: The company believes it will normally operate in a range of 28,000 to 35,000 machine hours per month. During the month of August 2016, the company incurred the following manufacturing overhead costs: Required: Prepare a flexible budget report, assuming that the company used 31,000 machine hours during August