Kenwood Company's Manufacturing Overhead Costs for the Assembly Department Are

Kenwood Company's manufacturing overhead costs for the assembly department are given below. $\begin{array} { l r c } & \begin{array} { c } \text { Fixed Costs } \\\text { Per Month }\end{array} & \begin{array} { c } \text { Variable Costs } \\\text { Per Hour }\end{array} \\\text { Indirect Labor } & \$ 1,400 & \$ .95 \\\text { Payroll Taxes } & 90 & 1.05 \\\text { Indirect Materials } & 220 & .20 \\\text { Power and Water } & 340 & .35 \\\text { Depreciation } & 1,020 & - \\\text { Taxes and Insurance } & 450 & - \\\text { Repairs } & 175 & .15\end{array}$
-Using the information provided, prepare a flexible budget for the department for the month of May 2013, assuming that the expected production is for 2,000 direct labor hours. The flexible budget should show costs for production levels of 90 percent and 110 percent of the expected production level of 2,000 hours.