Flexible budgets; two$-,$ three$-,$ and four$-$variance methods of factory overhead analysis

Jillian Manufacturing Inc. manufactures a single product and uses a standard cost system. The factory overhead is applied on the basis of direct labor hours. A condensed version of the company's flexible budget follows:

Direct labor hours $q,5,000$

$6,250$

$10,000$

Factory overhead costs:

$\backslash$table$[[$Variable costs,$$10,000,$$$12,500,$$$20,000$