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Pine Knoll Wood Products Company prepared the following factory overhead cost budget for the Press Department for February 2008, during which it expected to require 10,000 hours of productive capacity in the department. Variable overhead cost: Indirect factory labor $28,000 Power and light 4,500 Indirect materials 22,000 Total variable cost $54,000 Fixed overhead cost: Supervisory salaries $36,000 Depr of paint&equip 30,000 Insurance & prop taxes 8,000 Total fixed cost $74,000 Total factory overhead cost $128,500 Assuming that the estimated costs for March are the same as for February , prepare a flexible factory overhead cost budget for the Press Department for March for 8,000, 10,000, and 12,000 hours of production.
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