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 $67.00 per unit. Direct labor is $21.00 per hour. Prepare a flexible budget for overhead based on the above data. Flexible Budget 900 1,000 1,100 Direct Material $ Direct Labor Variable Overhead Fixed Overhead Total