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# Flexible Budgets - Hardball Corporation

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Hardball Corporation uses the following cost formulas in its flexible budget for manufacturing overhead:

Item Cost Formula
Utilities... \$6,000 per year, plus \$0.30 per machine hour (MH)
Supplies... \$10,000 per year, plus \$0.80 per machine hour
Depreciation... \$25,000 per year
Indirect labor... \$21,000 per year, plus \$0.40 per machine hour

Using these cost formulas, complete the following flexible budget:

Machine Hours Cost Formula
Overhead Costs (per MH) 8,000 10,000 12,000
___________________ \$_______ \$_______ \$_______ \$_______
___________________ ________ ________ ________ ________
___________________ ________ ________ ________ ________
Total variable costs.... \$_______ ________ ________ ________

___________________ ________ ________ ________
___________________ ________ ________ ________
___________________ ________ ________ ________
___________________ ________ ________ ________
Total variable costs.... ________ ________ ________
Total overhead costs... \$_______ \$_______ \$_______

#### Solution Preview

Hardball Corporation uses the following cost formulas in its flexible budget for manufacturing overhead:

Item Cost Formula
Utilities... \$6,000 per year, plus \$0.30 per machine hour (MH)
Supplies... \$10,000 per year, plus \$0.80 per machine ...

#### Solution Summary

This solution is comprised of a detailed explanation to prepare the flexible budgets for Hardball Corporation.

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