Astec Company is preparing budgets for the coming year. 120,000 labour hours will be 100% level of expected productive time, but a flexible budget at 90%, 110% and 120% is required so that cost allowances can be set for these possible levels. 

Budgeted costs details

Fixed Costs per annum $

Depreciation 22,000

Staff salaries 43,000

Insurances 9,000

Rent and Rates 12,000

Variable Costs

Power $0.30 per direct labour hour

Consumables $0.05 per direct labour hour

Direct labour $3.50 per direct labour hour

Semi-Variable Costs

Analysis of past records, adjusted to eliminate the effect on inflation shows the following:

Direct labour hours Total Semi-variable cost

Last year 6 110,000 $330,000

Year 5 100,000 305,000

Year 4 90,000 280,000

Year 3 87,000 272,500

Year 2 105,000 317,500

Year 1 80,000 255,000

Required:

A Cost Budget at 100% and flexed to show cost allowances at 90%, 110% and 120%