Problem 1 FLEXIBLE BUDGETS Mitchell Company uses a flexible budget for overhead based on direct labor hours (DLH). Master budget figures, based on 900,000 direct labor hours, and actual overhead for March, when 80,000 labor hours were worked, are as follows: Master Budget March Actual Variable: Indirect labor $ 225,000 $ 20,700 Indirect materials 1,350,000 119,000 Other 900,000 81,800 Fixed: Supervision 420,000 34,000 Depreciation 750,000 62,500 Other 600,000 52,000 Instructions: Prepare a flexible budget performance report for March.