Raney Company uses a flexible budget for manufacturing overhead that is based on direct labour hours. The variable manufacturing overhead costs per direct labour hour are as follows: Indirect labour $0.70 Indirect materials 0.50 Utilities 0.40 Fixed overhead costs per month are follows: supervision $4,000; depreciation $1,500; and property taxes $800. The company believes it will normally operate in a range of 7,000 to 10,000 direct labour hours per month. Assume that in July 2020, Raney Company incurs the following manufacturing overhead costs: $4,000 $6,100 Variable Costs Indirect labour Indirect materials Utilities Fixed Costs Supervision Depreciation Property taxes 4,300 3,000 3,200 800 Instructions a. Prepare a flexible budget performance report, assuming that the company worked 9,000 direct labour hours during the month. b. Prepare a flexible budget performance report, assuming that the company worked 8,500 direct labour hours during the month. c. Comment on your findings