Nathan’s Demolition Ltd wants to prepare flexible budget cost estimates for the following items within a range of 32 000 to 40 000 chargeable hours.

	Fixed cost				Variable cost per chargeable hour
Depreciation Electricity Insurance Maintenance Administration Equipment lease Supplies		$18 000 3 600 8 600 7 400 16 920 14 400 2 480				$0.20 0.40 1.20 0.15 — — 0.55

Required

A. Prepare a flexible overhead budget for 32 000, 36 000 and 40 000 chargeable hours.

B. Calculate the fixed, variable and total overhead rates if 35 000 hours are actually charged to clients during the budget period.