P. bu E10-2 Crede Company budgeted selling expenses of $30,000 in January, $35,000 in February, and $40,000 in March. Actual selling expenses were $31,200 in January, $34,525 in February, and $46,000 in March. Instructions (a) Prepare a selling expense report that compares budgeted and actual amounts by month and for the year to date. (b) What is the purpose of the report prepared in (a), and who would be the primary recipient? (e) What would be the likely result of management's analysis of the report? E10-3 Thome Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.00 Indirect materials 0.60 Utilities 0.40 Fixed overhead costs per month are supervision $4,000, depreciation $1,200, and property taxes $800. The company believes it will normally operate in a range of 7,00010,000 direct labor hours per month. Instructions Prepare a monthly manufacturing overhead flexible budget for 2014 for the expected range of activity, using increments of 1,000 direct labor hours