QUESTION #1 The following data is for Mediglove Industries and is used in developing the master manufacturing overhead budget for the processing department. The budget is based on an activity index of direct labour hours. Variable Costs Annual Fixed Costs Indirect labour Indirect materials Factory utilities Factory repairs Rate per Direct Labour Hour $0.50 0.75 0.45 0.25 Supervision Depreciation Insurance Rent $45,000 20,000 15,000 30,000 The company prepared the master overhead budget on the expectation that 600,000 direct labour hours would be worked during the year. In June, 48,000 direct labour hours were worked. At that level of activity, actual costs were as follows: 1. Variable, per direct labour hour-indirect labour $0.53; indirect materials $0.70; factory utilities $0.47; and factory repairs $0.29. 2. Fixed-same as budgeted. Required a. Prepare a monthly flexible manufacturing overhead budget for the year ending December 31, 2020, assuming production levels range from 35,000 to 50,000 direct labour hours per month. Use increments of 5,000 direct labour hours. b. Prepare a budget performance report for June, comparing actual results with budgeted data based on the flexible budget. c. Describe how effectively are costs controlled. d. State the formula for calculating the total budgeted costs for Mediglove Industries. e. Prepare a flexible budget graph, showing total budgeted costs at 35,000 and 45,000 direct labour hours