E24-4 Raney Company 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 0.50 Utilities 0.40 Fixed overhead costs per month are: Supervision $4,000, Depreciation $1,500 and Property Taxes $800. The company believes it will normally operate in a range of 7,000-10,000 direct labor hours per month. Assume that in July 2010, Raney Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor $8,700 Supervision $4,000 Indirect materials 4,300 Depreciation 1,500 Utilities 3,200 Property taxes 800 a) Prepare a flexible budget performance report, assuming that the company worked 9,000 direct labor hours during the month. (If answer is zero, please enter 0 as the amount. Enter NA as the variance. Do not leave any fields blank. Enter all amounts as positive amounts.) b) Prepare a flexible budget performance report, assuming that the company worked 8,500 direct labor hours during the month. c) Comment on your finding.