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PA10. LO 8.4 Prepare a flexible budget for overhead based on the following data: Percent of capacity 90% 100% 110% Direct labor hours 3,600 4,000

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PA10. LO 8.4 Prepare a flexible budget for overhead based on the following data: Percent of capacity 90% 100% 110% Direct labor hours 3,600 4,000 4,400 Units of output 900 1,000 1,100 Variable overhead $3,600 $ 4,000 $ 4,400 Fixed overhead $6,000 $ 6,000 $ 6,000 Total overhead $9,600 $10,000 $10,400 Normal capacity = 100% and overhead is applied based on direct labor hours Standard overhead rate = $10,000/4,000 = $2.50 per direct labor hour Direct materials are $67.50 per unit. Direct labor is $23.50 per hour. Solution Units 900 1,000 1,100 $67.50 per unit Direct material Direct labor Variable overhead Fixed overhead Total

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