P2. Coyote Company uses a flexible budget for manufacturing overhead based on direct labor hours. For 2022, the master overhead budget for the Packaging Department based on 400,000 direct labor hours was as follows. Variable Overhead Costs: Indirect labor Supplics and lubricants Maintenance Uilities Total Fixed Overhead Costs: $480,000 160,000 240,000 200.000 $1,080,000 Depreciation Supervision Property taxes Insurance Total $ 25,000 $ 60,000 25,000 20.000 $130,000 Glenda Expects to operate between 33,000 direct labor hours and 35,000 direct labor hours per month. During July, 34,000 direct labor hours were worked. The company incurred the following variable overhcad costs in July: indirect labor $42,000, supplies and lubricants $12,600, maintenance $17,000, and utilities $15,000. Actual fixed overhead costs were the same as monthly budgeted fixed costs. Instructions: 1. Prepare a monthly flexible manufacturing overhead budget for the expected range of acvity, using increments of 1,000 direct labor hours. 2 Preare a flexible budget report for Glenda for the month of July and provide possible reasons for the difference between the budgeted amount and the actual amount.