Flexible Budget Application The polishing department of Taylor Manufacturing Company operated during April 2016 with the following manufacturing overhead cost budget based on 5,000 hours of monthly productive capacity: Taylor Manufacturing Company Polishing Department Overhead Budget (5,000 Hours) For the Month of April 2016 Variable costs: Factory supplies Indirect labor Utilities Patent royalties on secret process $100,000 152,000 68,000 296,000 Total variable overhead $616,000 Fixed costs: Depreciation on factory equipment Factory taxes Factory insurance Utilities (base charge) 160,000 144,000 48,000 32,000 80,000 44 Total fixed overhead 464,000 Total manufacturing overhead $1,080,000