Southern Services is preparing flexible budget cost estimates for the following items within a range of 16 000 to 24 000 chargeable hours.

Required (a)Prepare a flexible overhead budget for 16 000, 20 000 and 24 000 chargeable hours.
(b)Calculate the fixed, variable and total overhead rates if 21 000 hours are actually charged to clients during the budget period.

Transcribed Image Text:

Rent Electricity Insurance Training Temporary secretarial Fixed cost $164.000 Variable cost per chargeable hour 7 000 10 000 3 000 $0.20 0.38 1.40 25.00 support Non-billable hours 35 000 Sundry expenses 21 000 1.40