P25-2B Gonzalez Company produces one product, Olpe. Because of wide fl uctuations in demand for Olpe, the Assembly Department experiences significant variations in monthly production levels. The annual master manufacturing overhead budget is based on 300,000 direct labor hours. In July, 27,500 labor hours were worked. The master manufacturing overhead budget for the year and the actual overhead costs incurred in July are as follows. Instructions (a) Prepare a monthly flexible overhead budget for the year ending December 31, 2017, assuming monthly production levels range from 22,500 to 30,000 direct labor hours. Use increments of 2,500 direct labor hours. (b) Prepare a budget report for the month of July 2017, comparing actual results with budget data based on the flexible budget. (c) - Were costs effectively controlled? Explain. (d) State the formula for computing the total monthly budgeted costs in the Gonzalez Company. (e) Prepare the flexible budget graph showing total budgeted costs at 25,000 and 27,500 direct labor hours. Use increments of 5,000 on the horizontal axis and increments of $10,000 on the vertical axis