Asper Company has recently introduced budgeting as an integral part of its corporate planning process. An inexperienced member of the accounting staff was given the assignment of constructing a flexible budget for manufacturing overhead costs and prepared it in the format that follows:

Percentage of Capacity	80%	100%
Machine-hours	40,800	51,000
Utilities	$ 29,400	$ 34,500
Supplies	4,080	5,100
Indirect labour	8,160	10,200
Maintenance	31,320	35,400
Supervision	11,000	11,000
Total manufacturing overhead cost	$ 83,960	$ 96,200

The company assigns manufacturing overhead costs to production on the basis of standard machine-hours. The cost formulas used to prepare the budgeted figures above are relevant over a range of 80% to 100% of capacity in a month. The managers who will be working under these budgets have control over both fixed and variable manufacturing overhead costs.

Required:

1.	Use the high