Problem 17-48 Flexible Budget (1.0 17-5) Oak Hill Township operates a motor pool with 20 vehicles. The motor pool furnishes gasoline oil, and other supplies for the cars and hires one mechanic who does routine maintenance and minor repairs Major repairs are done at a nearby commercial garage. A supervisor manages the operations Each year the supervisor prepares a master budget for the motor pool. Depreciation on the automobiles is recorded in the budget to determine the costs por mile. The following schedule presents the master budget for the year and for the month of July OAK HILL TOWNSHIP Motor Pool Budget Report for July Annun Master One-Month Overor Budget Master Budget July Actual (Under:) Budget Gasoine $ 81,000 5 5.750 $ 8,515 $1.765 Olmor repairs, parts, and supplies 7.200 600 760 150 Outside repairs 5.400 450 100 (350) Insurance 12.000 1.000 1,050 50 Salaries and benefits 50.000 5,000 5.000 0 Depreciation 52.800 4.400 4.620 220 Total Co $218.400 $18,200 $20.045 $1,845 Total miles 900,000 75.000 4500 Cost per me 5 0 2427 SO 2427 50 2121 Number of automobiles 20 20 21 The annual budget was based on the following assumptions 1. Automobiles in the pool 20 2 Miles per year per automobile 45.000 3 Miles per gallon per automobile 20 4 Gas per gallon $180 500 minor repairs parts and supplies per mile 50.000 6 Outside repairs per automobile per year $270 The supervisor is unhappy wth the monthly report, claiming that it untily presents his performance for Joly His previous employer uned flexible budgeting to compare actual costs to budgeted amount Required: What is the one monthly fexble budget and the resulting amount over or underbudget? (Une miles as the activity base) (Do not found intermediate calculations. If the amounts are equal to budget, select "No change) budget b. What is the monthly flexible budget for the oil minor repairs, parts, and supplies and the amount over- or under budget? (Use miles as the activity base) (Do not round intermediate calculations. If the amounts are equal to budget, select "No change":) Fleable budout c. What is the monthly axitda budget for salaries and benefits and the resulting amount over or underbudget? (if the amounts are equal to budget, select "No change) Flexible budget