Prepare a monthly manufacturing overhead flexible budget

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Question - Bramble 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 $1.00

Indirect materials 0.50

Utilities 0.30

Fixed overhead costs per month are Supervision $4,400, Depreciation $1,100, and Property Taxes $900. The company believes it will normally operate in a range of 7,500-10,500 direct labor hours per month.

Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1,000 direct labor hours.

Reference no: EM132602921

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