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Business, 14.04.2020 21:03 wrolle

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 $1.10 Indirect materials 0.70 Utilities 0.20 Fixed overhead costs per month are Supervision $4,000, Depreciation $1,500, and Property Taxes $700. The company believes it will normally operate in a range of 6,400–10,000 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1,200 direct labor hours. (List variable costs before fixed costs.)

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