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.

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 2022 for the expected range of activity, using increments of 1,000 direct labor hours.

Transcribed Image Text:

Indirect labor Indirect materials Utilities $1.00 0.70 0.40