Flexible Overhead Budget

Wiki Wiki Company has determined that the variable overhead rate is $$4\mathrm{.}50$ per direct labor hour in the Fabrication Department. The normal production capacity for the Fabrication Department is $10,000$ hours for the month. Fixed costs are budgeted at $$60,000$ for the month.

a$.$ Prepare a monthly factory overhead flexible budget for $9,000,10,000,$ and $11,000$ hours of production. Enter all amounts as positive numbers.

Wiki Wiki Company

Monthly Factory Overhead Cost Budget$-$Fabrication

Department

$\backslash$table$[[$Line Item Description,Amount,Amount,Amount$],[$Direct labor hours,$9,000,10,000,11,000],[$Variable factory overhead cost,,,$],[$Fixed factory overhead cost,,,$],[$Total factory overhead cost,,,$]]$

b$.$ How much overhead would be applied to production if $9,000$ hours were used in the department during the month? If required, round your calculations to two decimal places and your final answer to the nearest dollar.

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