Question 2 (Flexible Budgets) 20 Marks The manufacturing overhead budget for Reebles has the following items: Variable costs Indirect materials Indirect labour Maintenance Manufacturing supplies Total variable $25.000 $12.000 $10,000 56,000 costs 551.000 Page 3 of 9 Fund costs Supervision 517.000 Inspections $1,000 Insurance $2.000 Amortization $15,000 Totalfied costs $35,000 The budget was based on an estimated production of 2,000 units. During November, 1.500 units were produced, and the following costs were incurred: Variable costs Indirect materials $25,200 Indirect labour $23.500 Maintenance 58.200 Manufacturing supplies 55,100 Total variable costs 552.000 Fixed costs Supervision Inspections Insurance Amortisation $19.00 $1200 $2,200 534.700 Required: Prepare a flexible manufacturing overhead budget and the actual manufacturing over report for month ended November Anwer Determine the difference in total variable costs, total feed costs and total este Answers Determine the erences between budgeted and actual contudget Vrance) Antwer d) Identify the variances as favourable or unfavourable