The cost formulas for Swan Company’s manufacturing overhead costs are given below. The costs cover a range of 8,000 to 10,000 machine-hours.
Overhead Costs Cost Formula
Supplies . . . . . . . . . . . . . . $0.20 per machine-hour
Indirect labor . . . . . . . . . . $10,000 plus $0.25 per machine-hour
Utilities . . . . . . . . . . . . . . . $0.15 per machine-hour
Maintenance . . . . . . . . . . $7,000 plus $0.10 per machine-hour
Depreciation . . . . . . . . . . $8,000

Required:
Prepare a flexible budget in increments of 1,000 machine-hours. Include all costs in your flexible budget.