Problem Five - Flexible Budgeting (20 point value) John McClain, controller for Willis Company, has been instructed to develop a flexible budget for overhead costs. The company produces two types of frozen desserts: Icey and Tasty. The two desserts use common raw materials in different proportions. The company expects to produce 250,000 gallons of each product during the coming year. Icey requires 0.30 direct labor hours per gallon and Tasty requires 0.25 hours per gallon. John has developed the following fixed and variable costs for each of the four overhead items: $1.25 Overhead Item Maintenance Power Indirect labor Rent Fixed Cost Variable Rate per DLH $53,000 1.70 78,200 4.85 64,500 A. ou Required: Prepare an overhead budget for the expected activity level for the coming year. Prepare an overhead budget that reflects production that is 10% higher than expected (for both products). Assume this quantity is within the relevant range. Prepare an overhead budget that reflects production that is 10% lower than expected (for both products). Assume this quantity is within the relevant range