Bumblebee Company estimates that 378,500 direct labor hours will be worked during the coming year, 2017, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data are computed for the year.

Fixed Overhead Costs				Variable Overhead Costs
Supervision		$87,840		Indirect labor		$166,540
Depreciation		68,760		Indirect materials		83,270
Insurance		30,000		Repairs		37,850
Rent		24,360		Utilities		75,700
Property taxes		18,480		Lubricants		30,280
		$229,440				$393,640

It is estimated that direct labor hours worked each month will range from 25,800 to 36,600 hours. During October, 25,800 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,320, Depreciation $5,730, Insurance $2,460, Rent $2,030, and Property taxes $1,540. Variable overhead costs: Indirect labor $12,352, Indirect materials, $5,336, Repairs $2,510, Utilities $5,460, and Lubricants $2,304. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,600 direct labor hours over the relevant range for the year ending December 31, 2017.

(b) Prepare a flexible budget report for October.

Please see image for (ACCOUNT NAMES***)

nment Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Fixed Costs Indirect Labor Indirect Materials nsurance Lubricants Property Taxes Rent Repairs Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs