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Apply the Concepts Campbell Company has a "maintaining equipment" activity and wants to develop a...

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Accounting

Apply the Concepts
Campbell Company has a "maintaining equipment" activity and wants to develop a flexible budget formula for the activity. The following resources are used by the activity:
Three portable diagnostic units, with a lease cost of $12,000 per year per unit
Three maintenance personnel each paid a salary of $60,000 per year (A total of 6,000 maintenance hours are supplied by the three workers.)
Parts and supplies: $150 per diagnosis
Maintenance hours: Five hours used per diagnosis
During the year, the activity operated at 80 percent of capacity and incurred the following actual activity and resource costs:
Lease-cost: $36,000
Salaries: $192,000
Parts and supplies: $155,000
Required:
Prepare a flexible budgeting formula for the maintenance activity using maintenance hours as the driver:
Fixed costs (resources acquired in advance of usage): $
Variable cost per maintenance hour (acquired as needed):
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