Bond Company uses the following figures to prepare its annual manufacturing overhead budget for 2020:

Variable overhead costs (total $3.50 per direct labor hour)

Fixed overhead costs (for the relevant range)

Depreciation per month $ 30,000

Supervision per month 20,000

Property taxes per month 12,000

Total fixed overhead costs per month $ 62,000

The relevant range for monthly activity is between 16,000 and 24,000 direct labor hours.

Instructions

Prepare flexible budget for the monthly activity levels of 18,500 and 20,000 direct labor hours.