Overhead Budget, Flexible Budget Visio Company manufactures eyeglasses and has developed the following flexible budget for overhead for the coming year. Activity level is measured in direct labour hours. Activity Level (hours) Variable Cost 6,000 8,000 10,000 Formula Variable costs: Maintenance $1.85 $ 11,100 $ 14,800 $ 18,500 Supplies 2.60 15,600 20,800 26,000 Power 0.05 300 400 500 Total variable costs $4.50 27,000 36,000 45,000 Fixed costs: Depreciation 58,700 58,700 58,700 Salaries 65,600 65,600 65,600 Total fixed costs 124,300 124,300 124,300 Total overhead costs $151,300 $160,300 $169,300 The company produces two different styles of glasses. The production budget for November is 9,000 units for style CA66, and 12,000 units for style CA88. Style CA66 requires 26 minutes of direct labour time, and CA88 requires 44 minutes. Fixed overhead costs are incurred uniformly throughout the year. Required: 1. Calculate the number of direct labour hours needed in November to produce style CA66 and the number of direct labour hours needed in November to produce style CA88. What are the total direct labour hours budgeted for November? Style CA66 direct labour hours Style CA88 direct labour hours Total direct labour hours hours 2. Prepare an overhead budget for November. Round all activity level amounts to the nearest dollar. (Hint: The budgeted fixed costs given are for the year.) Visio Company Overhead Budget For the Month of November Formula Activity Level 12,700 Hours Variable costs: Maintenance $ Supplies Power Total variable costs Fixed costs: Depreciation Salaries Total fixed costs Total overhead costs