Q2. The costs of operating a fleet of buses are as follows: Fuel $0.15 per mile Depreciation $6,000 per bus per year. Prepare a flexible budget for fuel and depreciation for each bus at a level of 30,000, 40,000 and 50,000 miles. Q3. Prepare a flexible budget for Cedar Jeans Company using production levels of 16,000, 18,000, and 20,000 units produced. The following is additional information necessary to complete the budget: Variable costs: Direct Labor ($6.00 per unit) Direct Materials ($8.00 per unit) Variable Manufacturing Costs ($2.50 per unit) Fixed costs: Supervisor's Salaries $80,000 Rent $12,000 Depreciation on Equipment $24,000 Q4. The budgeted prices for materials and direct labor per unit of finished product are $$12 and $5, respectively. The production manager is delighted about the following data: Master (Static) Actual Budget Costs Variance Direct materials $96,000 $90,000 $6,000 F Direct labor 40,000 37,600 2,400 F Is the manager's happiness justified? Prepare a report that might provide a more detailed explanation of why the static (master) budget was not achieved. Actual output was 6,800 units