OVERHEAD BUDGET, FLEXIBLE BUDGET Blazer Company manufactures machine parts in its Prague plant. Blazer has developed the following flexible budget for overhead for the coming year. Activity level is measured in direct labor hours.

Activity Level (hours) Variable Cost Formula 14,000 21,000 28,000 Variable costs:

Maintenance $3.70 $ 51,800 $ 77,700 $103,600 Supplies 2.68 37,520 56,280 75,040 Power 0.06 840 1,260 1,680 Total variable costs $6.44 $ 90,160 $135,240 $180,320 Activity Level (hours) Variable Cost Formula 14,000 21,000 28,000 Fixed costs:
Depreciation $ 14,700 $ 14,700 $ 14,700 Salaries 75,000 75,000 75,000 Total fixed costs $ 89,700 $ 89,700 $ 89,700 Total overhead costs $179,860 $224,940 $270,020 The Prague plant produces two different types of parts. The production budget for November is 50,000 units for Part Q19 and 20,000 units for Part R08. Part Q19 requires 6 minutes of direct labor time, and Part R08 requires 36 minutes. Fixed overhead costs are incurred uniformly throughout the year.
Required:
. Calculate the number of direct labor hours needed in November to produce Part Q19 and the number of direct labor hours needed in November to produce Part R08. What are the total direct labor hours budgeted for November?
. Prepare an overhead budget for November. (Hint: The budgeted fixed costs given are for the year.)
Problem