presented below are the monthly factory overhead cost budget( at normal capacity of 5000 units or 20,000 direct labor hours) and the production and cost dat for a month. the predetermined overhead rate is based on normal capacity.

fixed cost
depreciation on building and machinery	1200
taxes on building and machinery	500
insurance on building and machinery	500
superintendents salary	1500
supervisors salaries	2300
Maintenance wages	1000	7000
variable cost
repairs	400
maintenance supplies	300
other supplies	200
payroll taxes	800
small tools	300	2000
total standard factory overhead		9000

prepare a flexible budget for production levels of 80%, 90%, and 110%, assuming that variable costs will vary in direct proportion to the change in volume, but with the following exceptions.(hint: set up a third category for semi-variable/fixed expenses)

A. At 110% of capacity, another supervisor will be needed at a salary of 10,500 annually.

B. At 80% of capacity, the repairs expense will drop to one-half of the amount at 100% capacity

C. At 80% of capacity,one part-time maintenance worker,earning 6000 a year, will be laid off

D. At 110% of capacity, a machine not normally in use and on which no depreciation is normally recorded will be used in production. Its cost was 12000, it has a ten year life, and straight line depreciation will be taken