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The cost formulas for Swan Company's manufacturing overhead costs are given below. The costs cover a range of 8,000 to 10,000 machine-hours. Overhead Costs Cost
The cost formulas for Swan Company's manufacturing overhead costs are given below. The costs cover a range of 8,000 to 10,000 machine-hours.
Overhead Costs | Cost Formula |
---|---|
Supplies | $0.20 per machine hour |
Indirect Labor | $10,000 plus $0.25 per machine hour |
Utilities | $0.15 per machine hour |
Maintenance | $7,000 plus $0.10 per machine hour |
Depreciation | $8,000 |
Prepare a flexible budget in increments of 1,000 machine hours. Include all costs in your flexible budget.
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