QUESTION 2 Lawrence Company budgeted a level of activity of 8,000 machine hours to be worked each month in the Machining Department. At this level of activity, manufacturing overhead costs were budgeted as follows: Variable manufacturing overhead Indirect materials 8 12,000 Indirect labor 18,000 Repairs 6,400 Utilities 9,600 Fixed manufacturing overhead Supervisory salaries 7,000 Property taxes 1,000 Depreciation 4,000 Total manufacturing overhead $58,000 Required: The actual manufacturing costs incurred for the month of March, when 8,200 machine hours were worked, are listed below on a partially completed budget report. Complete the budget report in a manner that would be most useful for evaluating the performance of the Machining Department manager for the month of March, 2014