E13-2

The cost formulas for Emory Companys manufacturing overhead costs are given below. These cost formulas cover a relevant range of 15,000 to 25,000 machine-hours each year.

Required

Prepare a flexible budget in increments of 5,000 machine-hours. Include all costs in your budget.

\\begin{tabular}{|ll|} \\hline Overhead costs & Cost formula \\\\ \\hline Utilities & \\( 0.30 \\) per machine-hour \\\\ Indirect labour & \\( 52,000 \\) plus 1.40 per machine-hour \\\\ Supplies & \\( 0.20 \\) per machine-hour \\\\ Maintenance & \\( 18,000 \\) plus 0.10 per machine-hour \\\\ Depreciation & \\( 90,000 \\) \\\\ \\hline \\end{tabular}