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Montgomery Company has developed the following flexible budget formulas for its four overhead items: Overhead item Fixed Cost Variable rate per direct labor hour Maintenance

Montgomery Company has developed the following flexible budget formulas for its four overhead items:

Overhead item

Fixed Cost

Variable rate per

direct labor hour

Maintenance

$10,105

$13

Power

$1,112

$0.21

Indirect labor cost

$12.00

Equipment lease

$ 7,000

Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours).

What is the total budgeted overhead for an expected activity level of 10,000 units.

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