Your answer is partially correct. Bramble Company estimates that 342,200 direct labor hours will be worked during the coming year, 2020, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year. Fixed Overhead Costs Supervision $94,200 Depreciation 77,280 Insurance 30,960 Rent 24,960 Property taxes 23,160 $250,560 Variable Overhead Costs Indirect labor $143,724 Indirect materials 88,972 Repairs 47.908 Utilities 51,330 Lubricants 17,110 $349,044 It is estimated that direct labor hours worked each month will range from 22,700 to 32,600 hours. During October, 22,700 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,850, Depreciation $6,440, Insurance $2,535, Rent $2,080, and Property taxes $1,930. Variable overhead costs: Indirect labor $10,574, Indirect materials,$5,472, Repairs $3,138, Utilities $3,735, and Lubricants $1,555. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,300 direct labor hours over the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs.) Budget Actual Costs Activity Level 22700 22700 Direct Labor Hours Variable Costs 9534 10574 Indirect Labor 5902 5472 Indirect Materials 3178 3138 Repairs 3405 3735 Utilities 1135 1555 Lubricants 23154 24474 13 Total Variable Costs Supervision 7850 7850 i Depreciation 6440 6440 Insurance 2580 2535 i Property Taxes 2080 2080 i Property Taxes 1930 i 1930 Total Fixed Costs 20880 i 20835 i Total Costs $ 44034 i $ 45309 i 12 Manufacturing Overhead Flexible Budget Report For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Actual Costs 22700 22700 9534 $ 10574 $ 1040 Unfavorable 5902 5472 430 Favorable 3178 3138 40 Favorable 3405 3735 330 Unfavorable 1135 1555 420 Unfavorable 23154 24474 1320 Unfavorable 7850 i 7850 i 0 Neither Favorable nor Unfavorable 6440 i 6440 i 0 Neither Favorable nor Unfavorable 2580 i 2535 45 Favorable 2080 i 2080 i 0 Neither Favorable nor Unfavorable 1930 i 1930 0 Neither Favorable nor Unfavorable 20880 i 20835 45 Favorable 44034 i $ 45309 $ 1275 Unfavorable