Question: 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

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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