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Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas: Grooming supplies (variable) Direct labor (variable) Overhead (mixed) y

Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas: Grooming supplies (variable) Direct labor (variable) Overhead (mixed) y = $0+ $4x y - $0 + $13x y = $9,600 +$1x Milo, the owner, has determined that direct labor is the cost driver for all three categories of costs. (a) Prepare a flexible budget for activity levels of 550, 600, and 680 direct labor hours. (List variable costs before fixed costs.) RENSING GROOMERS Flexible Budget Activity Level Direct Labor Hours Variable Costs 550 600 680 Grooming Supplies $ $ $ Direct Labor Overhead Total Variable Costs Fixed Costs Overhead Total Fixed Costs Total Costs $ $ $

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