Problem G - IV Flexible Overhead Budget (15 points) Lawrence Company budgeted a level of activity of 8000 machine hours to be worked each month in the Machining Department. At this level of activity, manufacturing overhead costs were budgeted as follows: Variable manufacturing overhead Indirect materials $ 12,000 Indirect labor 18,000 Repairs 6,400 Utilities 9,600 Fixed manufacturing overhead Supervisory salaries 7,000 Property taxes 1,000 Depreciation 4 000 Total manufacturing overhead 8,000 Instructions The actual manufacturing costs incurred for the month of March, when 8,200 machine hours were worked, are listed below on a partially completed budget report. Complete the budget report in a manner that would be most useful for evaluating the performance of the Machining Department manager for the month of March, 2014. LAWRENCE COMPANY Manufacturing Overhead Budget Report Machining Department For the Month Ended March 31, 2014 Difference Budget at Actual at Favorable F _ Unfavorable U Variable manufacturing overhead Indirect materials $ $ 11,500 $ Indirect labor 17,800 Repairs 7,400 Utilities 11 150 Total variable 47 850 Fixed manufacturing overhead Supervisory salaries 6,800 Property taxes 1,100 Depreciation 4 050 Total fixed 11 950 Total costs $ m $