Brickman Manufacturing, Inc., has developed the following flexible budget for overhead for the coming year. Activity level is measured in direct labor hours.

Brickman produces two different styles of daily planners, the pocket planner and the desk planner. The production budget for June is 15,000 units for the pocket planner and 10,125 units for the desk planner. The pocket planner requires 5 minutes of direct labor time, and the desk planner requires 8 minutes. Fixed overhead costs are incurred uniformly through¬
out the year.
Required:
1. Prepare an overhead budget for June.
2. The Mortar Board chapter at State University ordered 6,000 pocket planners from Brickman to be sold as their "start of the Fall Semester" fundraiser. These pocket planners must be ready by June 30 and were not included in the original production budget for June. Without preparing a new overhead budget, what is Brickman's new total bud¬
geted overhead for June?

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Variable Cost Formula 2,000 Activity Level (hours) 2,500 3,000 Variable costs: Maintenance Supplies $0.80 $ 1,600 $ 2,000 0.20 400 500 Power 0.35 700 875 $ 2,400 600 1,050 Total variable costs $1.35 $ 2,700 $ 3,375 $ 4,050 Fixed costs: Depreciation $ 4,800 $ 4,800 $ 4,800 Salaries 18,000 18,000 18,000 Total fixed costs Total overhead costs $22,800 $22,800 $22,800 $25,500 $26,175 $26,850