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Problem - Flexible overhead budget - Carson Wood Products Company prepared the following factory overhead cost budget for the Press Department for April 2012, during which it expected to require 10,000 hours of productive capacity in the department:
Variable overhead cost:
Indirect factory labor
$83,000
Power and light
3,800
Indirect materials
28,000
Total variable cost
$114,800
Fixed overhead cost:
Supervisory salaries
$40,000
Depreciation of plant and equipment
25,000
Insurance and property taxes
16,000
Total fixed cost
81,000
Total factory overhead cost
$195,800
Assuming that the estimated costs for May are the same as for April, prepare a flexible factory overhead cost budget for the Press Department for May for 8,000, 10,000, and 12,000 hours of production.
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