Question 2 (Flexible Budgets) 20 Marks The manufacturing overhead budget for Reebles has the following items: Click to view suggestions Variable costs Indirect materials Indirect labour Maintenance Manufacturing supplies Total variable costs $25,000 $12,000 $10,000 $6,000 $53,000 Fixed costs Supervision Inspections $17,000 $1,000 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 $13,500 Maintenance $8,200 Manufacturing supplies $5,100 Total variable costs $52,000 1 Fixed costs Supervision Inspections Insurance Amortization $19,800 $1,200 $2,200 $14,700 He Required: a) Prepare a flexible manufacturing overhead budget and the actual manufacturing overhead report for month ended November b) Determine the difference in total variable costs, totalfed costs and total costs c) Determine the differences between budgeted and actual costs. (Budget Variances) d) Identify the variances as favourable or unfavourable o Question 2 (Flexible Budgets) 20 Marks The manufacturing overhead budget for Reebles has the following items: Click to view suggestions Variable costs Indirect materials Indirect labour Maintenance Manufacturing supplies Total variable costs $25,000 $12,000 $10,000 $6,000 $53,000 Fixed costs Supervision Inspections $17,000 $1,000 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 $13,500 Maintenance $8,200 Manufacturing supplies $5,100 Total variable costs $52,000 1 Fixed costs Supervision Inspections Insurance Amortization $19,800 $1,200 $2,200 $14,700 He Required: a) Prepare a flexible manufacturing overhead budget and the actual manufacturing overhead report for month ended November b) Determine the difference in total variable costs, totalfed costs and total costs c) Determine the differences between budgeted and actual costs. (Budget Variances) d) Identify the variances as favourable or unfavourable o