Lone Star Enterprises uses the following cost formulas in its flexible budget for manufacturing overhead.

Item	Cost Formula
Indirect labor	$18,000 per year, plus $0.80 per machine hour
Indirect material	$5,000 per year, plus $1.20 per machine hour
Factory utilities	$9,000 per year, plus $0.35 per machine hour
Factory depreciation	$25,000 per year

Using the above cost formulas, prepare a flexible budget according to the following format:

Overhead Costs	Cost per Machine hour	Machine Hours
Variable overhead costs:		8,000	10,000	12,000
Indirect Labor	$__________	______	______	______
Indirect Materials	$__________	______	______	______
Factory Utilities	$__________	______	______	______
	$__________	______	______	______
	$__________	______	______	______
Total variable costs	$__________	______	______	______
Fixed overhead costs:
Indirect Labor	$__________	______	______	______
Indirect Materials	$__________	______	______	______
Factory Utilities	$__________	______	______	______
Factory Depreciation	$__________	______	______	______
	$__________	______	______	______
Total fixed overhead costs	$__________	______	______	______
Total overhead costs		______	______	______