720 800 Percent of capacity 90% 100% 110% Direct labor hours 3,600 4,000 4,400 Units of output 880 Variable overhead $3,960 $4,400 $4,840 Fixed overhead 5,600 5,600 5,600 Total overhead $9,560 $10,000 $10,440 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 $69.50 per unit. Direct labor is $22.50 per hour. Prepare a flexible budget for overhead based on the above data. Flexible Budget 720 800 880 50,040 55,600 61,160 Direct Material Direct Labor Variable Overhead 89,100X 3,960 4,400 4,840 Fixed Overhead 5,600 5,600 5,600 Total Feedback Check My Work Use the individual rates given to calculate direct materials, direct labor, and variable overhead using the different unit levels. Then, factor in the fixed costs for each unit level. Add together all four components for each unit level to determine the total amounts for each level