Problem 9 The manager of Repairs and Maintenance Department in response to a request, submitted the following budget estimates for his department that are to be used to construct a flexible budget to be used during the coming budget year: Details of costs Planned at 6,000 direct repair hours Planned at 9,000 direct repair hours Employee salaries 30,000 30,000 Indirect repair materials 40,200 60,300 Miscellaneous cost 13,200 16,800 (a)Prepare a flexible budget for the department up to activity level of 10,000 repair hours. (use increments of 1,000 hours). (b) What would be the budget allowance at 8,500 direct repair hours