PE 22-1B Flexible budgeting At the beginning of the period, the Assembly Department budgeted direct labor of $112,000 and property tax of $12,000 for 7,000 hours of production. The department actually completed 7,500 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting. • Variable cost: o Direct labor (600 hours × $14.50* per hour)………………………… • Fixed cost: o Equipment depreciation……………………………………………………… • Total department costs……………………………………………………………………