Felix Company uses a fl exible 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 $3,000, 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 fl exible manufacturing overhead budget for 2017 for the expected range of activity, using increments of 1,000 direct labor hours.

Transcribed Image Text:

Indirect labor Indirect materials Utilities $0.70 0.50 0.40