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Berne, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect

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Berne, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor Indirect materials Maintenance Utilities Fixed overhead costs per month are: $5.00 2.50 0.80 0.30 Supervision Insurance Property taxes Depreciation $800 200 300 900 The company believes it will normally operate in a range of 2,000 to 4,000 machine hours per month. Prepare a flexible manufacturing overhead budget for a month for the expected range of activity, using increments of 1,000 machine hours.

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