Flexible Budget Application The cutting department of Liberty Manufacturing Company operated during September 2016 with the following manufacturing overhead cost budget based on 6,000 hours of monthly productive capacity: Liberty Manufacturing Company Cutting Department Overhead Budget (6,000 Hours) For the Month of September 2016 Variable costs: Factory supplies Indirect labor Utilities (usage charge) Patent royalties on secret process $48,000 72,000 36,000 144,000 Total variable overhead 300,000 Fixed costs: 96,000 Depreciation on factory equipment140,000 40,000 24,000 32,000 Factory taxes Factory insurance Utilities (base charge) Total fixed owerhead 332,000 Total manufacturing overhead $632,000