The cost formulas for Emory Company’s manufacturing overhead costs are given below. These cost formulas cover a relevant range of 15,000 to 25,000 machine-hours each year.

Required
Prepare a flexible budget in increments of 5,000 machine-hours. Include all costs in your budget.

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Overhead costs Utilities Indirect labour Supplies Maintenance Depreciation Cost formula £0.30 per machine-hour £52,000 plus £1.40 per machine-hour £0.20 per machine-hour £18,000 plus £0.10 per machine-hour £90,000