Holloway Sleep Systems manufactures nylon mesh hammocks for a chain of retail outlets located throughout the southeast. The company plans to manufacture and sell 28,000 hammocks during the fourth quarter. Overhead costs are expected to include:

Variable indirect materials...... $ 5.75 per hammock
Variable indirect labor......... $12.50 per hammock
Other variable overhead ........ $ 2.25 per hammock
Salaries................ $ 78,000 per quarter
Insurance................ $ 5,000 per quarter
Depreciation.............. $ 35,000 per quarter

Required
Prepare Holloway’s manufacturing overhead budget for the fourth quarter.