Please complete A and B, Thank you!

1. As accounting manager for Datum Company, Inc., you are given the following budget report by the production manager for manufacturing overhead. The production manager was very proud in how well he controlled costs and believes the company president will be impressed with the considerable cost savings for the company ($36.300, about 7% under budget). Before making a recommendation to the company president, you decide to begin your investigation by analyzing the report and considering the effect of activity levels on the budget. Datum Company, Inc. Manufacturing Overhead Budget Report Year Ended December 31, 2016 get erence Machine Hours 80,000 70.000 Variable Manufacturing Overhead: Indirect Labor Indirect Materials Plant Utilities Plant Machinery Maintenance $166,400 118,800 11,200 $148,800 109,700 9,600 46.300 314,400 $17,600 F 9.100 F 1,600 F 8.500 E 36,800 F Total Variable Manufacturing Overhead 351,200 Fixed Manufacturing Overhead: Supervisory Salaries Plant Machinery Depreciation Factory Property Taxes Factory Insurance 75,000 41,000 22,500 75,000 42,000 22,000 1,000 U 500 F Total Fixed Manufacturing Overhead 500 U $479.000 S36300 F Total Manufacturing Overhead A. Prepare an appropriate budget report based on flexible budget information in the space provided below: Datum Company, Inc. Flexible Manufacturing Overhead Budget Report Year Ended December 31, 2016 Variable Manufacturing Overhead Indirect Labor Indirect Materials Plant Utilities Plant Machinery Maintenance Total Variable Manufacturing Overhead Fixed Manufacturing Overhead Supervisory Salaries Plant Machinery Depreciation Factory Property Taxes Factory Insurance Total Fixed Manufacturing Overhead Total Manufacturing Overhead B. Based on all of the available information, what advice would you give to the company president? Be sure to justify this advice with appropriate