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) Variable costs: For the Month of April 2016 Factory supplies $100,000 Indirect labor 152,000 Utilities 68,000 Patent royalties on secret process 296,000 Total variable overhead $616,000 Fixed costs: Supervisory salaries 160,000 Depreciation on factory equipment 144,000 Factory taxes 48,000 Factory insurance 32,000 Utilities (base charge) 80,000 Total fixed overhead 464,000 Total manufacturing overhead $1,080,000 The polishing department was operated for 4,500 hours during April and incurred the following manufacturing overhead costs: Factory supplies $97,470 Indirect labor 136,110 Utilities (usage factor) 82,800 Utilities (base factor) 96,000 Patent royalties 280,366 Supervisory salaries 167,000 Depreciation on factory equipment 144,000 Factory taxes 55,000 Factory insurance 32,000 Total manufacturing overhead incurred $1,090,746