Activity-Based Flexible Budgeting

Wade Paving Company has a sealcoating activity and wants to develop a flexible budget formula for the activity. The following resources are used by the activity:

Five truck-mounted sealing units, with a lease cost of $12,000 per year per unit

Ten sealcoating employees each paid a salary of $47,000 per year (A total of 12,000 sealcoating hours are supplied by the 10 workers.)

Sealcoating materials: $400 per job

Sealcoating hours: 4 hours used per job

During the year, the activity operated at 85 percent of capacity and incurred the following actual activity and resource costs:

Lease cost: $60,000

Salaries: $484,100

Sealcoating materials: $1,015,300

what if sealcoating employees were hired through outsourcing and paid $30 per hour (the sealcoating equipment is provided by Wade)?

sealcoating cost= $??? + $130