2 Thome Company uses a flexible budget for manufacturing overhead based on direct labor hours. 3 Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.00 Indirect materials 0.60 Utilities 0.40 9 Fixed overhead costs per month are supervision $4,000, depreciation, $1,200, and property taxes $800. 10 The company believes it will normally operate in a range of 7,000- 10,000 direct labor hours per month. 11 12 Instructions 13 Prepare a monthly manufacturing overhead flexible budget for 2014 for the expected range of activity, 14 using increments of 1,000 direct labor hours. 15 NOTE: Enter a number in cells requesting a value: enter either a number or a formula in cells with a "?" . 16 17 18 19 THOME COMPANY 20 Monthly Manufacturing Overhead Flexible Budget 21 For the Year 2014 22 23 Activity level 24 Direct labor hours 7,000 8,000 9,000 10,000 25 Variable costs 26 Indirect labor ($) Value Value Value Value 27 Indirect materials ($0.60) Value Value Value Value 28 Utilities ($0.40) Value Value Value Value 29 Total variable cost ($2.00) ? ? ? ? 30 Fixed costs 31 Supervision Value Value Value Value 32 Depreciation Value Value Value Value 33 Property taxes Value Value Value Value 34 Total fixed costs ? ? ? ? 35 36 Total costs ? ? ? 37 38 Q1 - Thome Co. Q2 - Thome Co Q3 - Dewitt Co (+