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Chip Company has the following production standard for overhead costs: Variable Costs Fixed Costs per per Direct Labor Period: Hour Indirect Materials $4.70 Supervision $88,000 Indirect Labor 11.60 Depreciation 9,400 Other Property 7.20 Taxes 2,700 Total Total Fixed Variable $23.50 Costs Costs $100,100 Required: 1. Prepare a flexible budget for activities ranging from 4,000 labor hours to 7,000 direct labor hours in increments of 1,000 hours in the attached Workpaper #1. in the attached Workpaper #1. 2. Using the following information, prepare a budget variance report for Chip Company in the attached Workpaper #1. Chip Company's actual activity was 5,000 direct labor hours and the actual costs were as follows: Total Variable Costs: Fixed Costs: Indirect $23,200 Supervision $89,400 Materials Indirect 58,900 Depreciation 9,500 Labor Other Property 37,200 Taxes 2,350 Workpaper Files in PDF and Excel: 11 Exam 5 Workpaper #1.pdf 11 Exam 5 Workpaper #1.xlsx CHIP COMPANY FLEXIBLE BUDGET REPORT Quantity of Direct Labor Hours Variable Costs: Indirect Materials Indirect Labor Other Total Variable Costs Fixed Costs: Supervision Depreciation Property Taxes Total Fixed Costs Total Overhead Costs . CHIP COMPANY BUDGET VARIANCE REPORT Actual Budget Variance U or F Variable Costs: Indirect Materials Indirect Labor Other Total Variable Costs 5 6 7 8 9 SO 11 32 33 34 35 36 37 38 39 Fixed Costs: Supervision Depreciation Property Taxes Total Fixed Costs Total Overhead Costs 40 41 42 2