Quarterly budgeted overhead costs for two different levels of activity follow. The 3,000 level was the expected level from the master budget. The actual activity level was 1,500 hours. Cost Formula (S) Direct Labor Hours 4,000 hours 6,000 hours | Maintenance . . $120,000 $160,000 | Depreciation '. 5,500 5,500 20,000 20,000 Make (:1 flexible budget for the activity level of 8,500 direct labor hours