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:

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 ofproduction.

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Variable overhead cost: Indirect factory labor Power and light Indirect materials $28,000 4,500 22,000 Total variable cost 54,500 Fixed overhead cost: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes $36,000 30,000 8,000 Total fixed cost 74,000 $128,500 Total factory overhead cost