3. Flexible Budget.

Cost Formula to calculate Manufacturing Overhead Golden Company as follow. Cost Formula relevant for range 500 to .1000 machine hours annually.

Overhead Cost Cost Formula

Utilities $0.25 per machine hours

Indirect Labor $12.000 plus $0.40 machine hours

Supplies $0.50 per machine hours

Maintenance $8.000 plus $0.10 per machine hours

Depreciation $30.000

Required:

a.Make flexibel budget for increment 100 machine hours

b.Calculate all expenses into your budget