Flexible Overhead Budget

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 9,000 hours of productive capacity in the department:

Variable overhead cost:
Indirect factory labor	$64,800
Power and light	2,520
Indirect materials	28,800
Total variable overhead cost		$96,120
Fixed overhead cost:
Supervisory salaries	$33,640
Depreciation of plant and equipment	21,150
Insurance and property taxes	13,460
Total fixed overhead cost		68,250
Total factory overhead cost		$164,370

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 7,000, 9,000, and 11,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.

Leno Manufacturing Company
Factory Overhead Cost Budget-Press Department
For the Month Ended November 30
Direct labor hours	7,000	9,000	11,000
Variable overhead cost:
Indirect factory labor	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3
Power and light	fill in the blank 4	fill in the blank 5	fill in the blank 6
Indirect materials	fill in the blank 7	fill in the blank 8	fill in the blank 9
Total variable factory overhead	$fill in the blank 10	$fill in the blank 11	$fill in the blank 12
Fixed factory overhead cost:
Supervisory salaries	$fill in the blank 13	$fill in the blank 14	$fill in the blank 15
Depreciation of plant and equipment	fill in the blank 16	fill in the blank 17	fill in the blank 18
Insurance and property taxes	fill in the blank 19	fill in the blank 20	fill in the blank 21
Total fixed factory overhead	$fill in the blank 22	$fill in the blank 23	$fill in the blank 24
Total factory overhead cost	$fill in the blank 25	$fill in the blank 26	$fill in the blank 27

Standard Product Cost

Sana Rosa Furniture Company manufactures designer home furniture. Sana Rosa uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room table are as follows:

Direct labor:	standard rate	$25.00 per hr.
	standard time per unit	3.00 hrs.
Direct materials (oak):	standard price	$8.50 per bd. ft.
	standard quantity	19 bd. ft.
Variable factory overhead:	standard rate	$3.20 per direct labor hr.
Fixed factory overhead:	standard rate	$1.20 per direct labor hr.

a. Determine the standard cost per dining room table. If required, round your answer to two decimal places. $fill in the blank 1 per dining room table

b. A standard cost system provides Rosa Furniture management a cost control tool using the principle of . Using this principle, cost deviations from standards can be investigated and corrected.