Blue Spruce Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable Budget

Actual Costs

nor Unfavorable

$

$

$

manufacturing overhead costs per direct labor hour are as follows.

Budgeted fixed overhead costs per month are Supervision $$5,040,$ Depreciation $$1,512,$ and property Taxes $$1,008.$ The company

believes it will normally operate in a range of $8,820-12,600$ direct labor hours per month.