The July manufacturing overhead budget of Kyoto Corporation, shown below, was constructed assuming an activity level of 48,000 direct labor hours: Variable costs: Indirect labor $48,000 Indirect materials 24,000 Factory supplies 19,200 $ 91,200 Fixed costs: Depreciation $38,400 Supervision 69,600 Property taxes 36,000 144,000 Total overhead costs $235,200 If management prepared a flexible budget for July using 54,000 direct labor hours, what would happen to the fixed costs in the budget with 54,000 direct labor hours?

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Fixed Costs can be calculated as Total Overhead Costs Variab... View the full answer