90% 100% 110% Percent of capacity Direct labor hours Units of output 3,600 4,000 4,400 1,100 900 1,000 Variable overhead $3,240 $3,600 $3,960 Fixed overhead 5,200 5,200 5,200 Total overhead $8,440 $8,800 $9,160 Normal capacity = 100% and overhead is applied based on direct labor hours Standard overhead rate = $3,800/4,000 = $2.20 per direct labor hour Direct materials are $66.50 per unit. Direct labor is 522.50 per hour. Prepare a flexible budget for overhead based on the above data. 1,100 Flexible Budget 900 1,000 Direct Material Direct Labor Variable Overhead Fixed Overhead il du i Total