Prepare a flexible budget for overhead based on the following data: Percent of capacity Direct labor hours

Prepare a flexible budget for overhead based on the following data:

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Percent of capacity Direct labor hours Units of output Variable overhead Fixed overhead Total overhead 90% 3,600 900 $3,600 $6,000 $9,600 100% 4,000 1,000 $ 4,000 $ 6,000 $10,000 Normal capacity = 100% and overhead is applied based on direct labor hours Standard overhead rate = $10,000/4,000 = $2.50 per direct labor hour Direct materials are $67.50 per unit. Direct labor is $23.50 per hour. 110% 4,400 1,100 $ 4,400 $ 6,000 $10,400