Hajiey Inc. produces a variety of toothpastes. Hajiey's controller has developed standard costs for the following four overhead items:

Next year, Hajiey expects production to require 90,000 direct labour hour.
Required:
1. Prepare an overhead budget for the expected level of direct labour hours for the coming year.
2. Prepare an overhead budget that reflects production that is 15 percent higher than expected, and for production that is 15 percent lower than expected.

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Variable Rate per Direct Labour Hour Overhead Item Total Fixed Cost Maintenance S 86,000 $0.20 0.45 Power Indirect labour 140,000 35,000 2.10 Rent