Bumblebee Company estimates that 306,600 direct labor hours will be worked during the coming year, 2020, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year.

It is estimated that direct labor hours worked each month will range from 29,000 to 37,400 hours. During October, 29,000 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,380, Depreciation $5,950, Insurance $2,255, Rent $1,940, and Property taxes $1,260. Variable overhead costs: Indirect labor $14,380, Indirect materials, $6,010, Repairs $3,990, Utilities $4,690, and Lubricants $3,280. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 2,800 direct labor hours over the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs.)

(b) Prepare a flexible budget report for October. (List variable costs before fixed costs.)

Fixed Overhead Costs Variable Overhead Costs Supervision $88,560 Indirect labor $141,036 Depreciation 71,400 Indirect materials 67,452 Insurance 27,720 Repairs 42,924 Rent 23,280 Utilities 45,990 Property taxes 15,120 Lubricants 30,660 $226,080 $328,062 BUMBLEBEE COMPANY Packaging Department Monthly Manufacturing Overhead Flexible Budget For the Year 2020 Fixed Costs BUMBLEBEE COMPANY Packaging Department Manufacturing Overhead Flexible Budget Report For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Fixed Costs