Novak 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\mathrm{.}10,$ Indirect materials: $0\mathrm{.}80,$ Utilities: $0\mathrm{.}50.$

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.

Prepare a monthly manufacturing overhead flexible budget for $2022$ for the expected range of activity, using increments

of $1,000$ direct labor hours. $($List variable costs before fixed costs.$)$

Answer rating: 100% (QA)

To prepare a monthly manufacturing overhead flexible budget for Novak Company for 2022 we will calcu... View the full answer