The controller of Lindgren Corporation decided to prepare a flexible factory overhead budget ranging from 80% to 100% of capacity for the next year, with 50,000 hours as the 100% level. For costs of a semi variable nature, the fixed amount and the variable rate are determined by the high and low points method. The direct labor rate is $7.50 per hour. Additional data for factory overhead are as follow:

Semi-variable costs (from previous five years):

Required:
Prepare a flexible factory overhead budget ranging from 80% to 100% of capacity, in 10% intervals.

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Annual fixed costs: Depreciation Insurance Maintenance cost (ncluding payroll taxes and fringe benefits) 24,000 Property tax. Supervisory staff (including payroll taxes and fringe benefits) 36,000 1,500 1,500 Variable costs: $.10 per direct labor hour Shop supplies Indirect labor (excluding inspection).$45 per direct labor hour Payroll taxes and fringe benefits 18% of total labor cost, i.e., direct plus indirect Direct Labor Hours 44.000 40,000 45,000 49,000 50,000 Power and Light $1,500 1,400 1,600 1,650 1,700 Inspection (Including Payroll Taxes and Fringe Benefits) $ 9,200 9,000 9,200 10,000 10,200 Other Semivariable Expenses $8,000 7,400 8,200 8,800 8,900 Year 20A 208 200 20D 20E