Problem: lilasCompany uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.00 Indirect materials 0.70 Utilities 0.40 Fixed overhead costs per month are supervision $4,000, depreciation $1,200, and property taxes $800. The company believes it will normally operate in a range of 7,000-10,000 direct labor hours per month. Instructions Prepare a monthly manufacturing overhead flexible budget for 2025 for the expected range of activity, using increments of 1,000 direct labor hours. Prepare flexible budget reports for manufacturing overhead costs, and comment on findings.