ACTIVITY FLEXIBLE BUDGET

Cohlmia Company provided information on the following four overhead activities.

Activity Driver Fixed Cost Variable Rate

Maintenance Machine hours $40,000 $ 2.50

Machining Machine hours 25,000 3.00

Setting up Setups - 2,250

Purchasing Purchase orders 75,000 6.00

Cohlmia has found that the following driver levels are associated with two different levels of production.

Driver 40,000 units 60,000 units

Machine hours 60,000 90,000

Setups 50 70

Purchase orders 10,000 16,000

Required:

Prepare an activity-based flexible budget.