Prepare a flexible overhead budget. (Obj. 3). The monthly overhead costs of the Cleaning Department of Bear Creek Corporation have been analyzed as follows:

Variable Fixed

(per direct labor hour) (per month)

Supervision — $4,600 Other indirect labor $ .80 2,400 Utilities .30 800 Depreciation — 1,000 Payroll taxes 1.07 630 Other taxes — 100 Fringe benefits .88 1,400 Supplies .18 200 Assume that the department works 6,000 hours during July 19X9.
Prepare a budget for overhead for the month, showing the expected total for each cost element and the total for the department. LO.1