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- CheeseCo. Flexible budget is prepared for the same activity level (8,000 hours) as actually achieved. Cost. Total. Formula. Fixed. Flexible. Actual. Per Hour. Costs. Budget. Results. Variances. Machine hours. 8,000. 8,000. Variable costs. Indirect labor. 32,000. 34,000. Indirect material , ,500. Power ,000. 3,800. Total variable costs. 60,000. 63,300. Fixed Expenses. Depreciation. 12,000. 12,000. 12,000. Insurance. 2,000. 2,000. 2,050. Total fixed costs. 14,000. 14,050. Total overhead costs. 74,000. 77,350.