Bane Accounting Services planned to charge its customers $120 per hour in 2012. The chief operating officer expected that the company would provide 40,000 hours of service to clients. However, the vice president for marketing argued that the actual number of hours might range from 36,000 to 44,000 hours. Bane's standard variable cost is $65 per hour, and its standard fixed cost is $1,500,000.
Required:
Prepare flexible budgets for 36,000, 40,000, and 44,000 hours.

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The Answer of Bane Accounting Services planned to charge its customers $120 per hour in 2012. The chief operating officer expected that the company would provide 40,000 hours of service to clients. However, the vice president for marketing argued that the actual number of hours might range from 36,000 to 44,000 hours. Bane's standard variable cost is $65 per hour, and its standard fixed cost is $1,500,000.
Required:
Prepare flexible budgets for 36,000, 40,000, and 44,000 hours.

Bane Accounting Services Planned to Charge Its Customers $120 Per