There are two questions in this assignments. Please give me the detailed process, please. Thank you very much!

1. A new production manager would like to use cheaper materials in the production line, which he believes will increase the amount of scrap and rework but still reduce costs. In order to reflect the increase in scrap and rework, he decreases the number of finished goods to complete each work day. Once production employees become familiar with the requirements of the new materials, they do not strive to increase the number of finished goods produced near to the previous goal. Is this an example of setting budget goals too tightly, too loosely, or conflicting budget goals? 2. For 2015, a manufacturing company created the static budget shown below based on production of 5,000 products. The company expects that production may differ by an increase or decrease of 1,000 products. Prepare a flexible budget for the possible changes in production levels. Variable cost: Direct labor Direct materials Total variable cost Fixed cost: Utilities Salaries Depreciation Total fixed cost Total department costs $20,000 35,000 $55,000 $7,500 9,000 3,100 $19,600 $74,600