157. The Finishing Department of Pinnacle Manufacturing Co. prepared the following factory overhead cost budget for October of the current year, during which it expected to operate at a 100% capacity of 10,000 machine hours:
Variable cost:
Indirect factory wages$18,000
Power and light12,000
Indirect materials4,000
Total variable cost$34,000
Fixed cost:
Supervisory salaries$12,000
Depreciation of plant and
equipment8,800
Insurance and property taxes3,200
Total fixed cost24,000
Total factory overhead$58,000
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