The cost formulas for Echo Company's manufacturing overhead costs are given below. Prepare an annual flexible budget

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The cost formulas for Echo Company's manufacturing overhead costs are given below. Prepare an annual flexible budget for production at the 15 and 25 thousand machine hour levels. Include all these costs in your budget.

Overhead Cost Cost Formula

Utilities ............ $0.30 per machine hour

Indirect labor ......... $52,000 plus $1.40 per machine hour

Supplies ........... $0.20 per machine hour

Maintenance .......... $18,000 plus $0.10 per machine hour

Depreciation .......... $90,000

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Managerial Accounting

ISBN: 9780073526706

12th Edition

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

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Question Posted: Jan 10, 2013 05:23 AM

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The cost formulas for Echo Company's manufacturing overhead costs are given below. Prepare an annual flexible budget

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Computation of the flexible budget 15000 20000 25000 Particulars Amount Amount Amount Variable Cost ...View the full answer

Managerial Accounting

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