Flexible budget for factory overhead Presen monthly factory overhead cost bud 0,000 units or 30,000 direct lo P7-10 (a ented below are the normal capacity of 1 roduction and cost data for a month. The predetermiours) an the production a head rate is based on normal capacity Factory Overhead Cost Budget $1,800 Fixed cost Depreciation on building and machinery.... Taxes on building and machinery. Insurance on building and machinery. .. 750 800 4,400 6,200 . Supervisors' salaries. 1,500 $15,45 Variable cost: 600 450 300 1,200 Repairs... Maintenance supplies Payroll taxes 600 3,150 overhead... Required 1. Assuming that variable costs will vary in direct proportion to the change in volume, prepare a flexible budget for production levels of 80%, 90%, and 110% of normal capacity. Also determine the predetermined factory overhead rate at each level of volume in both units and direct labor hours. 2, Prepare a flexible budget for production levels of 80%, 90% and 110%, assuming that variable costs will vary in direct proportion to the change in volume, but with the following exceptions. (Hint: Set up a third category for semi-variable expenses.) At 110% of capacity, another supervisor will be needed at a a. salary of $27,000 annually