Prepare a monthly flexible manufacturing overhead budget

Reference no: EM13257308

Raney company uses a flexible budget for manufacturingoverhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows

Indirectlabor $1.00
Indirectmaterials 0.50
Utilities 0.40

Fixed overhead costs per month are: Supervision $4,000, Depreciation $1,500, and Property taxes $800. The company believesit will normally operate in a range of 7,000-10,000 direct laborhours per month

Instructions

Prepare a monthly flexible manufacturing overhead budget for 2008 for the expected range of activity, using increments of 1,000 direct labor hours.

Reference no: EM13257308

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