Sanchez Sleep Systems manufactures nylon mesh hammocks for a chain of retail outlets located throughout the Southeast. The company plans to manufacture and sell 30,000 hammocks during the fourth quarter. Overhead costs are expected to include:

Variable indirect materials .......................... $4.25 per hammock

Variable indirect labor ............................... $11.50 per hammock

Other variable overhead ............................. $3.25 per hammock

Salaries ................................... .............. $ 60,000 per quarter

Insurance ................................... .............. $ 5,000 per quarter

Depreciation ................................... ........ $ 26,000 per quarter

Required

Prepare Sanchez's manufacturing overhead budget for the fourth quarter.