The November monthly factory overhead cost budget for Brass Ltd. at normal capacity of 10,000 units or 5,000 direct labor hours follows:

Variable:
Power	$ 6,000
Supplies	12,000
Maintenance	15,000
Total variable factory overhead	33,000
Fixed:
Supervisory salaries	24,000
Depreciation of buildings and equipment	8,000
Lights and heat	6,000
Property tax and insurance	22,000
Total fixed factory overhead	60,000
Total factory overhead	$93,000

(1) Prepare a flexible budget for 80%, 100% and 120% of normal capacity. (2) Determine the rate for application of factory overhead to work in process at each level of volume in relation to both units and direct labor hours.