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At the beginning 2023, Tiger Sportswear Production Company budgeted its MOH costs at 4 different capacity level as follows: For Capacity Levels (in mh); 1,000
At the beginning 2023, Tiger Sportswear Production Company budgeted its MOH costs at 4 different capacity level as follows: For Capacity Levels (in mh); 1,000 mh, 2,000 mh, 3,000 mh, and 4,000 mh; Indirect Materials ($) is expected to be $2,000, $4,000, $6,000, and $8,000; Depreciation ($) $7,000, $7,000, $7,000, and $7,000; Energy ($) $8,000, $11,000, $14,000, and $17,000, respectively. What is the flexible budget formula for Energy?
A. None of these.
B. $2/mh+$9,000
C. $4/mh+$5,000
D. $10/mh+$7,000
E. $3/mh+$5,000
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