A flexible budget for 15,000 hours revealed variable manufacturing overhead of $90,000 and fixed manufacturing overhead of $120,000. The budget for 25,000 hours would reveal total overhead costs of $210,000.

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The variable manufacturing overhead would increase with the hours, so for 25,000 hours, assuming the same rate, the variable overhead would be $150,000 (since $90,000 / 15,000 hours = $6 per hour, then $6 * 25,000 hours = $150,000). The fixed manufacturing overhead would remain the same at $120,000. Therefore, the total overhead costs would be $270,000 ($150,000 variable + $120,000 fixed).

A Flexible Budget for 15,000 Hours Revealed Variable Manufacturing Overhead