QUESTION 3) At the beginning for the year 2020, Shanghai Healthy Food Production Company budgeted its cost at 4 different capacity levels as follows:

Manufacturing Overheads	Capacity Level/Usage (in mh)
	10,000	12,000	15,000	2 0,000
Indirect Materials	30,000	36,000	45,000	60,000
Depreciation	15,000	15,000	15,000	15,000
Supervision	23,000	27,000	33,000	43,000
Energy	48,000	56,000	68,000	88,000
TOTAL	116,000	134,000	161,000	206,000

REQUIRED:

1. What is the flexible budget formula for the year 2020?
2. What is the Predetermined MOH Rate (Applied MOH Rate) if the budgeted capacity is set at 18,000 mh?