Flexible budgets; predetermined OH rates The Splash makes large fiberglass swimming pools and uses machine hours and direct labor hours to apply overhead in the Production and Installation departments, respectively. monthly cost formula for overhead in Production is y $7,950 +$4.05 MH; the overhead cost formula in Installation is y-$6,150+$14.25 DLH. These formulas are valid for a relevant range of activity up to 9,600 machine hours Production and 14,400 direct labor hours in installation. Each pool is estimated to require 25 machine hou in Production and 60 hours of cct labor in Installation. Expected capacity for the year is 192 pools. a. Prepare a flexible budget for Production at possible annual capacities of 4,000, 4,800, and 5,600 machine hours. ACTIVITY IN MHS Low 4,000 4,800. High 5,600 Production overhead costs Variable Fixed Total b. Prepare a flexible budget for Installation at possible annual capacities of 9,600, 11.200, and 12,800 machine hours ACTIVITY IN MHS Production overhead costs Variable Fixed Total Low High 9,600 11,200 12,800 ACTIVITY IN MHS Low High 9,600 11,200 12,800 Production overhead costs Variable Fixed Total $ c. Prepare a budget for next month's variable, fixed, and total overhead costs for each department assuming that expected production is 13 pools. Production costs Variable Faed (monthly amount) Total production overhead Installation costs Variable Fixed (monthly amount Total installation Total d. Calculate the total overhead cost to be applied to each pool scheduled for production in the coming month if expected capacity is used to calculate the predetermined OH rate Note: Round costs per DLH to two decimal places (ie round $4,355 to $4.36).