BE 163 A company prepares its flexible budget for manufacturing overhead based on Machine Hours Variable Manufacturing Overhead costs for the level of 10,000 machine hours are as follows: Indirect materials Indirect materials Maintenance Utilities $50,000 25,000 5,000 3,000 Fixed Manufacturing Overhead costs per month during 2017 are: $1,200 400 600 1,800 Supervision Insurance Property taxes Depreciation The company normally operates in a range of 5,000 to 8,000 machine hours per month during 2017. During the month of December 2017, the company operated 6,000 machine hours and actually incurred the following manufacturing overhead costs: Indirect labor Indirect materials Maintenance Utilities $28,000 16,200 2,800 1,900 Supervision Insurance Property taxes Depreciation $1,440 400 600 1,860