K A B D E F G H J 1 Flexible Budgeting, Cardinal Manufacturing 2 3 Gerry Johnston, packaging supervisor at Cardinal Manufacturing, was asked to put together a flexible 4 budget for Cardinal Manufacturing overhead. Gerry came up with the following formulas for overhead 5 costs. 6 7 Utilities $3.00 per machine hour 8 Maintenance $6.60 per machine hour plus $53,000 per month 9 Machine setup $1.20 per machine hour 10 Indirect labor $1.90 per machine hour plus $167,000 per month 11 Depreciation $95,000 per month 0 12 13 The information below was gathered for the month of June. The company worked 14 67,000 machine hours and produced 42,000 units. 15 Utilities Maintenance Machine setup Indirect labor Depreciation Total $ 188,000 491,000 92,400 313,000 91,000 $ 1,175,400 Gerry originally thought 58,000 machine hours would be worked during June. Actual fixed costs were: Maintenance $52,000, Indirect labor $155,200, Depreciation $91,000. Required: 1) Prepare a flexible budget for 50,000, 60,000, and 70,000 machine hours. = 2) Prepare a performance report for June based on the above information