Table 7: Variable overhead based on direct labour hours Electricity Indirect material Indirect labour Cost per direct labour hour R25 R40 R45 No additional rental expenses will be incurred as a fixed cost, however additional insurance will be needed to protect Bags4All Ltd against potential theft and loss. The increase in the insurance expense is yet to be determined. Table 7: Variable overhead based on direct labour hours Electricity Indirect material Indirect labour Cost per direct labour hour R25 R40 R45 No additional rental expenses will be incurred as a fixed cost, however additional insurance will be needed to protect Bags4All Ltd against potential theft and loss. The increase in the insurance expense is yet to be determined. Table 7: Variable overhead based on direct labour hours Electricity Indirect material Indirect labour Cost per direct labour hour R25 R40 R45 No additional rental expenses will be incurred as a fixed cost, however additional insurance will be needed to protect Bags4All Ltd against potential theft and loss. The increase in the insurance expense is yet to be determined. 3.2 Draft the following budgets of Bags4All for the months: June, July and August 2021 (refer to Note 1) (i) Production budget (ii) Material purchase budget (both materials) 3.2 Draft the following budgets of Bags4All for the months: June, July and August 2021 (refer to Note 1) (i) Production budget (ii) Material purchase budget (both materials)