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 41,600 52,000

Utilities $30,960 $37,200

Supplies 12,480 15,600

Indirect labour 16,640 20,800

Maintenance 40,960 47,200

Supervision 12,000 12,000

Total manufacturing overhead cost $113,040 $132,800

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-low method to separate fixed and variable costs.(Round variable cost answers to 2 decimal places.)

Overhead Item Variable Fixed Component Component Utilities Supplies Indirect labour Maintenance Supervision TotalsCost Overhead Costs Formula per Actual Cost Flexible Budget Spending Variance MH 45,760 MH 45,760 MH Variable overhead costs: Total variable overhead cost Fixed overhead costs: Total fixed overhead cost Total overhead cost