Problem Alt. E P2oer7a homework problem Howard company has direct materials cost of $25 per unit, Direct labor costs of $5, and variable overhead of $3 a unit. The budgeted fixed costs are $500 1. Prepare a flexible budget for 1000,1200, and 1500 units. 2. In December Howard produced 1000 units. In January they produced 1000 units. In February they produced 1200 units. In March they produced 1500 units. All costs were charged. Each month they pay 90% of this month's bills and 10% of last month's bills. Prepare a payment budget for January, February, and March