Shaw Corporation has developed the following flexible budget formula for annual indirect labor cost:
Total costs = $9,600 + $0.50 per machine hour

Operating budgets for the current month are based upon 30,000 hours of planned machine time.Indirect labor costs included in this planning budget are:

Question

Shaw Corporation has developed the following flexible budget formula for annual indirect labor cost: ​
Total costs = $9,600 + $0.50 per machine hour
​
Operating budgets for the current month are based upon 30,000 hours of planned machine time.Indirect labor costs included in this planning budget are:

Quizplus · Accepted Answer

The flexible budget formula is Total costs = $9,600 + $0.50 per machine hour. For 30,000 machine hours, the cost is $9,600 + ($0.50 * 30,000) = $15,800.

Shaw Corporation Has Developed the Following Flexible Budget Formula for Annual