(Flexible budget) Comet-Comet Enterprises produces glass paperweights, each of which requires one-fourth direct labor hour. The relevant range of activity per month is between 4,000 and 7,000 direct labor hours. The following cost for¬ mulas were derived for the company after analyzing cost records:

a. Prepare a flexible budget for Comet-Comet for each 1,000 direct labor hours of activity within the relevant range.

b. Determine the total overhead cost formula for Comet-Comet.LO1

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Direct material Direct labor Supervisor salaries Other indirect labor Utilities Maintenance Indirect materials Property taxes and insurance $6.00 per unit $8.50 per hour $15,000 per month $6.00 per hour $3,700 plus $.45 per hour $5,000 plus $.70 per hour $.90 per unit $6,750 per month $.30 per unit Depreciation (unit of production basis)