The following selected information is for TriCounty Co. for the year 2020. Depreciation (straight line) $9,500 Managers salary 45,000 Direct material $3 per DLH Direct labour $10 per DLH Fixed overhead (excluding depreciation) 8,000 Factory supplies $.50 per DLH Variable overhead $1 per DLH Utilities $.75 per DLH

Required:

1. Prepare a flexible budget for 10,000, 20,000, 30,000, and 40,000 direct labour hours.

2. Compute total fixed costs, total variable costs, and total costs at all indicated levels.

3. Compute the fixed cost per DLH (round to two decimal points) at each activity level and explain why it changes.