Problem - Hausman Corporation bases its budget on machine-hours. The company's static planning budget for November appears below:
Budgeted number of machine-hours ------------------------ 9,500
Budgeted variable costs:
Supplies (@$3.70 per machine-hour) ---------- $35,150
Power (@$2.40 per machine-hour) ----------------22,800
Budgeted fixed costs:
Salaries ----------------------------------------------- 46,550
Equipment depreciation ---------------------------- 31,350
Total cost ----------------------------------------------------- $135,850
Required: Prepare a flexible budget for 9,800 machine-hours per month.