Part B To ensure the budgets prepared for 2022 are accurate and relevant before submitting to the Chief Financial Officer , the Finance Manager embarks on a budgetary control exercise for the first half of 2021. His assistant has presented the following variance report for review, which compares the actual manufacturing overhead costs for Q2 2021, to the budgeted costs for the same period: Q2 2021 Static Budget 8,000 Actual Results 8.800 Static Budget Variance 800 U Direct labour Hours ... ******...... Indirect materials ................... Indirect labor Maintenance Total Variable Costs $ $. $ $ 6,000 $ 8,800 $ 3,200 $ 18,000 $ 6,250 $ 9,000$ 3,300 $ 18,550 $ 250 200 100 550 U ........ U U U 1,500 U Fixed Costs Supervisory salaries Depreciation wwwwwwww Maintenance Total Fixed Costs $ $ $ $ 37,500 $ ... 14,000 $ 10.000 $ 61.500 $ 39,000 $ 14,000 $ 8,000 $ 61,000 $ 2.000 500 F F Total Manufacturing Overhead $ 79,500 $ 79,550 $ 50 U The Assistant Finance Manager suggests that the Production Manager failed to adequately control costs as ALL actual variable costs exceeded plan. The Finance Manager has noted that this Static Variance Report is not a true reflection of performance as the level of activity differs. Required: Prepare a Flexible Budget Variance Report for Q2 2021