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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.

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

Fixed:
Indirect labor

Maintenance

Depreciation

\$
\$

________________________________________

Hint 1

________________________________________

##### 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.

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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.

Supplies \$0.20 per machine-hour
Indirect labor \$10,000 plus \$0.25 per machine-hour
Utilities \$0.15 per ...

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