Skelton Corporation had planned to produce 50,000 units of product during the first quarter of the current year. The company prepared the following budget on May 1: Budgeted (50,000 units) Variable costs: Direct materials used $ 36,000 Direct labor 45,000 Variable overhead 22,500 Fixed costs: Manufacturing overhead 58,500 Total manufacturing costs $ 162,000 - During the first quarter, Skelton produced 60,000 units and incurred total manufacturing costs of $184,000. For the 2 questions, below, asked, show your calculations to help explain your choice. a. Which of the following amounts should not be included in Skelton's flexible budget at a 60,000-unit level? Explain the reasoning behind your choice A) Direct materials used, $43,200 B) Direct labor, $54,000 C) Variable overhead, $27,000 D) Fixed manufacturing overhead, $70,200 b. A performance report for Skelton's first quarter of operations using a flexible budget approach would show: A) Actual costs over budget by $1,300. B) Actual costs over budget by $11,700. C) Actual costs over budget by $15,150. D) Total costs per the flexible budget of $194,400.