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Question 2, (Flexible Budgets) 20 Marks Glenda Company uses a flexible budget for manufacturing overhead that is based on direct labour hours. For 2019, the master overhead budget for the packaging department at its normal capacity of 300,000 direct labour hours was as follows: Variable Costs Indirect labour Supplies and lubricants Maintenance Utilities Total $360,000 $150,000 $210,000 $120,000 $840,000 Fixed costs Supervision Amortization Property taxes Insurance Total $60,000 $24,000 $18,000 $12,000 $114.000 During July, 24,000 direct labour hours were worked. The company incurred the following variable costs in July: Indirect labour $30,200: supplies and lubricants $11,600: Maintenance $17,500 and utilities $9,200. Actual fixed overhead costs were the same as monthly budgeted fixed costs. Required a) Prepare a flexible manufacturing overhead budget and the actual manufacturing overhead report for the packaging department for month ended July 31, 2019, b) Determine the difference in total variable costs total fixed costs and total costs c) Determine the differences between budgeted and actual costs. (Budget Variances) d) Identify the variances as favourable or unfavourable