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

Hajiey Inc.

Overhead Budget

For the Coming Year

Formula Activity Level $110,000$ Hours

Variable costs:

Maintenance $$0\mathrm{.}20$

Power $0\mathrm{.}45$

Indirect labour $,2\mathrm{.}10$

$

Total variable costs

Fixed costs:

Maintenance

Indirect labour

Rent

Total fixed costs

Total overhead costs

$ Prepare an overhead budget that reflects production that is $15\%$ higher than expected, and for production that is $15\%$ lower than

expected.Flexible Budget for Various Levels of Activity

Hajiey Inc. produces a variety of toothpastes. Hajiey's controller has developed standard costs for the following four overhead items:

Next year, Hajiey expects production to require $110,000$ direct labour hours.

Required:

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

Hajiey Inc.

Overhead Budget

For the Coming Year

Formula Activity Level $110,000$ Hours