Problem 11-37 Flexible Budgeting At the beginning of last year, Jade Kamm, controller for Jager Inc., prepared the following budget for conversion costs at two levels of activity for the coming year: Direct Labour Hours 100,000 $1,000,000 180,000 18,000 225,000 25,000 240,000 120,000 60,000 $1,868,000 120,000 Direct labour Supervision Utilities Depreciation Supplies Maintenance Rent Other $1,200,000 180,000 21,000 225,000 30,000 284,000 120,000 70,000 $2.130,000 Total manufacturing cost Continued