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Prepare a flexible budget

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Question - The cost formulas of a manufacturing overhead costs are given below. The costs cover a range of 8,000 to 10,000 machine-hours.

Overhead costs include:

Supplies $0.20 per machine hour

Indirect labor $5,000 plus $0.25 per machine hour

Utilities $0.10 per machine hour

Maintenance $7,000 plus $0.10 per machine hour

Depreciation $8,000

Prepare a flexible budget in increments of 1,000 machine hours. Include all costs in your flexible budget and the calculations needed for all numbers.

Reference no: EM132090488

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