Manufacturing overhead flexible budget
Riverbed 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 $1.30
Indirect materials 1.00
Fixed overhead costs per month are Supervision $4,240, Depreciation $1,272, and Property Taxes $848. The company believes it will normally operate in a range of 7,420–10,600 direct labor hours per month.
Prepare a monthly manufacturing overhead flexible budget for 2022 for the expected range of activity, using increments of 1,060 direct labor hours. (List variable costs before fixed costs.)