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Indigo Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as follows. Budgeted foxed overhead costs per month are Supervision $4,800. Depreciation $1,440, and property Taxes $960. The company believes it will normally operate in arange of 8,40012,000 direct labor hours per month. Assume that in July 2022, Indigo Company incurs the following manufacturing overhead costs. (a) Prepare a flexible budget performance report, assuming that the company worked 10.800 direct labor hours during the month. (List variable costs before fixed costs.) (b) Prepare a flexible budget performance report, 35suming that the company worked 10,200 direct labor hours during the month. (List variable costs before fired costs.) \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline Utilities & & 4320 & & 3840 & & 480 & Favorable: \\ \hline Total Variable Costs o & & 22680 & & 21360 & & 1320 & Unfavorat: \\ \hline \multicolumn{8}{|l|}{ Fixed Costs } \\ \hline Supervision & & 4800 & & 4800 & & a & Neither Fa \\ \hline Depreciation & & 1440 & & 14%0 & & 0 & Neither Fa \\ \hline Property Taxes & & 960 & & 980 & & 0 & Neither Fa \\ \hline Total Fixed costs o & & 2200 & & 7200 & & 0 & Neither Fa \\ \hline Totaicosts & $ & 29880 & $ & 28560 & $ & 1320 & Fivorable \\ \hline \end{tabular}

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