Hockey Pro budgets 340 hours of direct labor during May. The company applies varlable overhead at the rate of $15 per direct labor hour. Budgeted fixed overhead equals $44,000 per month. Prepare a factory overhead budget for May. Hockey Pro budgets 340 hours of direct labor during May. The company applies varlable overhead at the rate of $15 per direct labor hour. Budgeted fixed overhead equals $44,000 per month. Prepare a factory overhead budget for May