Here$$s the full text from your latest image, ready for you to copy and paste: Comprehensive problem on overhead accounting under standard costing: publisher Reams Ltd publishes textbooks. A monthly flexible overhead budget for the firm is as follows: Reams Ltd Monthly flexible overhead budget Budgeted costs Direct labour hours $1500$ Variable costs Indirect material: Glue $$750$ Tape $300$ Miscellaneous supplies $3,000$ Indirect labour $8,750$ Utilities: Electricity $1,500$ Natural gas $450$ Total variable cost $$13,500|$ Fixed costs $|||||$ Supervisory labour $|$ $$12,500|$ $$12,500|$ $$12,500||$ Depreciation $|3,400|3,400|3,400||$ Property taxes and insurance $|4,100|4,100|4,100||$ Total fixed cost $|$ $$20,000|$ $$20,000|$ $$20,000||$ Total overhead cost $|$ $$33,500|$ $$35,750|$ $$38,000|$ The planned monthly production is $6,400$ books. The standard direct labour allowance is $0\mathrm{.}25$ hours per book. During February, Reams produced $8,000$ books and used $2,100$ direct labour hours. The actual overhead costs for the month were as follows: Actual variable overhead: $$19,530$ Actual fixed overhead: $$37,600$ Required: Determine the formula flexible overhead budget for Reams. Prepare a diagram similar to that in Exhibit $11\mathrm{.}5$ to show Reams$$ variable overhead variances for February. Indicate whether each variance is favourable or unfavourable. Draw a graph to depict Reams$$ variable overhead variances for February $($see Problem P$11\mathrm{.}33,$ requirement $1).$ Explain the meaning of each of the variances calculated in requirement $2.$ Prepare a diagram similar to that in Exhibit $11\mathrm{.}6$ to show Reams$$ fixed overhead variances for February. Draw a graph similar to that in Exhibit $11\mathrm{.}7$ to depict the company$$s applied and budgeted fixed overhead for February. Show the firm$$s February volume variance on the graph. Interpret the variances calculated in requirement $5.$ Prepare journal entries to record each of the following: $($a$)$ Incurrence of February$$s actual overhead cost $($b$)$ Overhead variance for the month $($c$)$ Application of February$$s overhead cost to work in process inventory. $9.$ Draw ledger accounts used in the journal entries of requirement $8,$ then post the journal entries to the ledger accounts