Berne inc uses a flexible budget for manufacturing overhead

Reference no: EM13609777

Berne, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor $6.00 Indirect materials 2.50 Maintenance .80 Utilities .30 Fixed overhead costs per month are: Supervision $600 Insurance 200 Property taxes 300 Depreciation 900 The company believes it will normally operate in a range of 2,000 to 4,000 machine hours per month. Instructions Prepare a flexible manufacturing overhead budget for the expected range of activity, using increments of 1,000 machine hours.

Reference no: EM13609777

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