The case contains three sections, covering variances and investment decisions. This information comes from chapters 9, 10 and 14 of your textbook. You can work in groups of UP TO three people for this case. You must show your calculations for each problem and your answers for the conceptual problems must be at least 3-4 sentences long This assignment is due on Friday, May 7th at 11:59 p.m. EST. It is worth 10% of your total grade. Part 1 - 35 points Starbright Corporation is continuing its budget preparations. Starbright had the following static budget and actual overhead costs for March. STARBRIGHT CORPORATION Manufacturing Overhead Budget (Static) For the Month of March STARBRIGHT CORPORATION Manufacturing Overhead Costs (Actual) For the Month of March Budgeted production in 117,500 Production in units 118,500 units Budgeted costs Costs Indirect materials. $5,875 Indirect materials $5,910 Indirect labor 14,100 Indirect labor 14,195 Utilities 11,750 Utilities 11,880 Maintenance 8,225 Maintenance 8,275 Salaries 42,000 Salaries 42,000 Depreciation. 16,800 Depreciation 16,800 Property taxes 3,000 Property taxes 3,000 Insurance 1,200 Insurance 1,200 Janitorial 1,500 Janitorial 1,500 Total budgeted costs $104,450 Total costs $104,760 Starbright produced 118,500 units in March rather than the budgeted number of units. Instructions 1. Prepare a flexible overhead budget based on the 118,500 units produced. (Hint: Indirect materials, indirect labor, utilities, and maintenance are variable costs. The other budgeted costs are fixed costs.) 2. Prepare a responsibility report (which shows the spending variances and activity variances) for the month of March. 3. What can you conclude about how well management is controlling its costs?