26. Fagan Company uses a lexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as folDows: Indirect labor Indirect materials $5.00 2.50 .50 30 Utilities Fixed overhead costs per month aue: .._ Supervision 5500 200 Depreciation 900 The company believes it will normally operate in a range of 2,000 to 4,000 machine Incurs the followisg bours per month. During the month of August, 2010, the compeary manafacturing overhead costs: Indirect labor Indirect materials Maintenance Utilities $14,000 8,100 1,400 950 720 200 300 930 Property taxes Prepare a flexible budget report, assuming that the company used 3,000 machine hours during August Instruetions Page 6