Thome company uses a flexible budget for manufacturing

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Reference no: EM13594469

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		$1.10
Indirect materials		0.60
Utilities		0.30

Fixed overhead costs per month are: Supervision $4,094, Depreciation $1,602, and Property Taxes $639. The company believes it will normally operate in a range of 7,200-10,200 direct labor hours per month.Prepare a monthly manufacturing overhead flexible budget for 2014 for the expected range of activity, using increments of 1,000 direct labor hours.

Reference no: EM13594469

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