Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of household cleaning products. Palladium's controller has developed standard costs for the following four overhead items: Total Fixed Cost $ 86,000 Overhead Item Maintenance Power Indirect labor Rent Variable Rate per Direct Labor Hour $0.20 0.45 2.10 140,000 35,000 Next year, Palladium expects production to require 88,000 direct labor hours. Exercise 9-63 Flexible Budget for Various Levels of Activity Refer to the information for Palladium Inc. above. Required: 1. Prepare an overhead budget for the expected level of direct labor hours for the coming year. 2. Prepare an overhead budget that reflects production that is 15% higher than expected and for production that is 15% lower than expected