i Data Table 12,500 hours Practical capacity Fixed costs of the Engineering Services Department in the 11,500 labor-hour to 12,500 labor-hour relevant range $ 300,000 Budgeted usage (quantity) of engineering services labor hours required to support the productions departments Machining department Assembly department Total 4,000 hours 8,500 hours 12,500 hours Budgeted variable cost per engineering services labor-hour 40 per hour used in the 11,500 labor-hour to 12,500 labor-hour relevant range S Actual usage (quantity) of engineering services labor-hours required to support the production departments Machining department Assembly department Total 3,500 hours 8,000 hours 11,500 hours