ABS Plumbing Ltd wants to prepare flexible budget cost estimates for the following items within a range of 33 000 to 41 000 chargeable hours.

Required (a)Prepare a flexible overhead budget for 33 000, 37 000 and 41 000 chargeable hours.
(b)Calculate the fixed, variable and total overhead rates if 36 000 hours are actually charged to clients during the budget period.

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Fixed cost Variable cost per chargeable hour Depreciation Electricity $18.000 3 600 Insurance 8 600 Maintenance 7 400 $0.20 0.40 1.20 0.15 Administration 16 920 Equipment 14 400 lease Supplies 2 480 0.55