Suppose it is September 15, 20x1, and the production plan has been revised for the fourth quarter so that Decision 24,000 units will be manufactured. The fourth quarter production runs will be 600 units each. Moreover, three MEL Clg new design styles will be commissioned instead of two.

a. Revise the fourth quarter manufacturing overhead budget to reflect the changed production plan.

b. Suppose a special adjustment will need to be made on the cutting machine at the midpoint of each production run at a cost of $150. Where will this cost appear in the overhead budget?