In an attempt to improve budgeting, the controller for Meliore, Inc., has developed a exible budget for overhead costs. Meliore, Inc., makes two types of products, the standard model and the deluxe model. Meliore expects to produce 300,000 units of the standard model and 120,000 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 of the four overhead items:

Cost Formula Maintenance $34,500+$1.25 DLH

Power $0.50 DLH

Indirect labor $68,400+$2.30 DLH

Rent $31,500

Prepare an OH budget for the expected activity level for the coming year.