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Problem - Hausman Corporation bases its budget on machine-hours. The company's static planning budget for November appears below:

Budgeted number of machine-hours ------------------------ 9,500

Budgeted variable costs:

Supplies (@$3.70 per machine-hour) ---------- $35,150

Power (@$2.40 per machine-hour) ----------------22,800

Budgeted fixed costs:

Salaries ----------------------------------------------- 46,550

Equipment depreciation ---------------------------- 31,350

Total cost ----------------------------------------------------- $135,850

Required: Prepare a flexible budget for 9,800 machine-hours per month.

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