Flexible Budget for Various Levels of Activity Palladium Inc. produces a variety of household deaning products. Palladium's controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed cost Variable Rate per Direct Labor Hour Maintenance $ 86,000 $0.20 Power 0.45 Indirect labor 140,000 2.10 Rent 35,000 Next year, Palladium expects production to require 90,000 direct labor hours. Required: 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 Activity level Pate per hour 90.000 Hours Variable costs Maintenance S s Indirect labor 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 S Maintenance Power Indirect labor Total variable costs Fixed costs Maintenance 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: S $ Maintenance Indirect labor Rent S Total fined costs Total overhead costs