Palladium Inc. produces a variety of household cleaning products. Palladiums controller has developed standard costs for the following four overhead items:

Overhead Item	Total Fixed Cost	Variable Rate per Direct Labor Hour
Maintenance	$ 86,000	$0.20
Power		0.45
Indirect labor	140,000	2.10
Rent	35,000

Next year, Palladium expects production to require 90,000 direct labor hours.

Required:

Question Content Area

1. Prepare an overhead budget for the expected level of direct labor hours for the coming year.

Variable costs:	Rate per Hour	Activity Level 90,000 Hours	blank
Maintenance	$fill in the blank 1986abfb0007ff3_1	$fill in the blank 1986abfb0007ff3_2	blank
Power	fill in the blank 1986abfb0007ff3_3	fill in the blank 1986abfb0007ff3_4	blank
Indirect labor	fill in the blank 1986abfb0007ff3_5	fill in the blank 1986abfb0007ff3_6	blank
Total variable cost	blank	$fill in the blank 1986abfb0007ff3_7	blank
blank	blank	blank	blank
Fixed costs:	blank	blank	blank
Maintenance	blank	$fill in the blank 1986abfb0007ff3_8	blank
Indirect labor	blank	fill in the blank 1986abfb0007ff3_9	blank
Rent	blank	fill in the blank 1986abfb0007ff3_10	blank
Total fixed costs	blank	$fill in the blank 1986abfb0007ff3_11	blank
Total overhead costs	blank	$fill in the blank 1986abfb0007ff3_12	blank

Question Content Area

2. Prepare an overhead budget that reflects production that is 15% higher than expected and for production that is 15% lower than expected.

Activity Level
	Rate per Hour	fill in the blank 4f0dc504906b01e_1 Hours	fill in the blank 4f0dc504906b01e_2 Hours
Variable costs:
Maintenance	$fill in the blank 4f0dc504906b01e_3	$ fill in the blank 4f0dc504906b01e_4	$ fill in the blank 4f0dc504906b01e_5
Power	fill in the blank 4f0dc504906b01e_6	fill in the blank 4f0dc504906b01e_7	fill in the blank 4f0dc504906b01e_8
Indirect labor	fill in the blank 4f0dc504906b01e_9	fill in the blank 4f0dc504906b01e_10	fill in the blank 4f0dc504906b01e_11
Total variable costs		$fill in the blank 4f0dc504906b01e_12	$fill in the blank 4f0dc504906b01e_13
Fixed costs:
Maintenance		$ fill in the blank 4f0dc504906b01e_14	$ fill in the blank 4f0dc504906b01e_15
Indirect labor		fill in the blank 4f0dc504906b01e_16	fill in the blank 4f0dc504906b01e_17
Rent		fill in the blank 4f0dc504906b01e_18	fill in the blank 4f0dc504906b01e_19
Total fixed costs		$fill in the blank 4f0dc504906b01e_20	$fill in the blank 4f0dc504906b01e_21
Total overhead costs		$fill in the blank 4f0dc504906b01e_22	$fill in the blank 4f0dc504906b01e_23