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You have just been hired by OpenDoor Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company?s costing system and ?do what you can to help us get better control of our manufacturing overhead costs.? You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.

After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for April:

	Cost Formula	Actual Cost in April
Utilities	$17,200 plus $0.18 per machine-hour	$	22,180
Maintenance	$39,100 plus $2.40 per machine-hour	$	77,100
Supplies	$0.40 per machine-hour	$	7,000
Indirect labor	$94,700 plus $1.50 per machine-hour	$	123,300
Depreciation	$68,000	$	70,100

During April, the company worked 16,500 machine-hours and produced 11,500 units. The company had originally planned to work 18,500 machine-hours during April.