Oivio Company manufactures toy cars and has developed the following flexible budget for overhead for the coming year. Activity level is measured in direct labour hours.

The company produces two different toy cars. The production budget for November is 30,000 units for car W23, and 60,000 units for car X280. Car W23 requires 12 minutes of direct labour time, and car X280 requires 24 minutes. Fixed overhead costs are incurred uniformly throughout the year.
Required:
1. Calculate the number of direct labour hours needed in November to produce car W23 and the number of direct labour hours needed in November to produce car X280. What are the total direct labour hours budgeted for November?
2. Prepare an overhead budget for November.

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Activity Level (hours) Variable Cost Formula 25,000 15,000 20,000 Variable costs: $ 57,000 63,750 $ 76,000 85,000 $ 95,000 106,250 $3.80 Maintenance Supplies 4.25 1,200 121,950 1,600 162,600 Power 0.08 2,000 203,250 $8.13 Total variable costs Fixed costs: Depreciation 144,700 188,900 144,700 188,900 144,700 188,900 Salaries Total fixed costs 333,600 $455,550 333,600 $496,200 333,600 $536,850 Total overhead costs