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Monthly manufacturing overhead flexible budget

30/12/2020 Client: saad24vbs Deadline: 12 Hours

E10-3 Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows.




Indirect labor


$1.00


Indirect materials


0.70


Utilities


0.40




Fixed overhead costs per month are supervision $4,000, depreciation $1,200, and property taxes $800. The company believes it will normally operate in a range of 7,000–10,000 direct labor hours per month.






Instructions


Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of 1,000 direct labor hours.


 

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