Flexible Budget In an attempt to improve budgeting, the controller for Mekore, Inc, has developed a flexible budget for overhead costs. Meliore, Inc, makes two types of products, the staridard model and the deluxe model. Meliore expects to produce 400,000 units of the standard model and 130,000 units of the deluxe model during the coming year The standard model requires 0.05 direct labor hour per unit, and the deluxe model requires 0.08. The controller has developed the following cost formulas for each the four overhead items: Maintenance Power Indirect labor Rent Required: Cost Formula $34,300 $%, 25 0U $0.50 DIH $68,500+ $2.30 DLH $31,100 1. Prepare an overhead budget for the expected activity level for the coming year Meliore, Inc. Overhead Budget For the Year Ended December 31 Budgeted direct labor hours Variable costs Maintenance Power Indirect labor Power Indirect labor Total variable costs Fbeed costs Maintenance Indirect labor Rent Total fixed costs Total overhead costs 2. Prepare an overhead budget that reflects production that is 10 percent higher than expected (for both products). Meliore, Inc. Overhead Budget For the Year Ended December 31 Per DLH Budgeted direct labor hours Variable costs Power Indirect labor Total variable costs Fixed costs: Total variable costs Fixed costs: Maintenance Indirect labor Rent Total fixed costs Total overhead costs Prepare an overhead budget for production that is 20 percent lower than expected. Meliore, Inc. Overhead Budget For the Year Ended December 31 Per DLH LH Budgeted direct labor hours Variable costs: Maintenance Power Indirect labor Total variable costs Fixed costs: Maintenance Indirect labor Rent Total fixed costs Total overhead costs