Wiki Wiki Company has determined that the variable overhead rate is $3.40 per direct labor hour in the Fabrication Department. The normal production capacity for the Fabrication Department is 8,000 hours for the month. Fixed costs are budgeted at $61,600 for the month. Required: a. Prepare a monthly factory overhead flexible budget for 7,000, 8,000, and 9,000 hours of production. b. How much overhead would be applied to production if 7,000 hours were used in the department during the month? If required, round your calculations to two decimal places and your final answer to the nearest dollar.