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    Swan Company

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    Prepare a Flexible Budget [LO1]
    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
    ________________________________________

    Required:
    Prepare a flexible budget in increments of 1,000 machine-hours. Include all costs in your flexible budget. (Round your answers to 2 decimal places for Cost Formula per MH. Omit the "$" sign in your response.)

    Swan Company
    Flexible Budget
    Cost
    Formula Machine-Hours
    Overhead Costs per MH 8,000 9,000 10,000
    Variable:
    Supplies $
    $
    $
    $

    Indirect labor

    Utilities

    Maintenance

    Total variable overhead cost $

    Fixed:
    Indirect labor

    Maintenance

    Depreciation

    Total fixed overhead cost

    Total overhead cost $
    $
    $

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    Hint 1

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    https://brainmass.com/business/budgets/swan-company-265384

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    Solution Preview

    Prepare a Flexible Budget [LO1]
    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 ...

    Solution Summary

    This solution is comprised of a detailed explanation to prepare a flexible budget in increments of 1,000 machine-hours. Include all costs in your flexible budget.

    $2.19