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Thome 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 $1.40Indirect materials 0.50Utilities 0.30
Fixed overhead costs per month are: Supervision $3,811, Depreciation $1,189, and Property Taxes $870. The company believes it will normally operate in a range of 6,600-10,500 direct labor hours per month.
Prepare a monthly manufacturing overhead flexible budget for 2014 for the expected range of activity, using increments of 1,300 direct labor hours
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prepare an essay which demonstrates their understanding about the issue
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