Flexible Budget for Various Levels of Activity Palladium Inc. produces a variety of household cleaning products. Palladium's controller has developed standard costs for the following four overhead items: Variable Rate per Direct Labor Hour Overhead Item Total Fixed Cost Maintenance $ 86,000 $0.20 Power 0.45 Indirect labor 2.10 140,000 35,000 Rent Next year, Palladium expects production to require 90,000 direct labor hours. 1. Prepare an overhead budget for the expected level of direct labor hours for the coming year. Palladium Inc. Overhead Budget For the Coming Year Variable costs: Rate per Hour Activity Level 90,000 Hours Maintenance Power Indirect labor Total variable cost Fixed costs: Maintenance Indirect labor Rent Total fixed costs Total overhead costs $ 2. Prepare an overhead budget that reflects production that is 15% higher than expected and for production that is 15% lower than expected. Activity Level Rate per Hour Hours Hours Variable costs: Maintenance Power $ $ Indirect labor Total variable costs Fixed costs: Maintenance Indirect labor Rent Total fixed costs Total overhead costs