) Cola Company uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows:

	Indirect labor	$5.00
	Indirect materials	2.75
	Maintenance	.50
	Utilities	.30

Fixed overhead costs per month are:

	Supervision	$1,200
	Insurance	400
	Property taxes	600
	Depreciation	1,800

The company believes it will normally operate in a range of 4,000 to 8,000 machine hours per month. Instructions Prepare a flexible manufacturing overhead budget for 6,000 units ONLY.

View keyboard shortcuts