Bumblebee Company estimates that 385,800 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

Supervision $91,080

Depreciation 74,520

Insurance 24,840

Rent 22,560

Property taxes 17,880

Total $230,880

Variable Overhead Costs

Indirect labor $185,184

Indirect materials 100,308

Repairs 61,728

Utilities 57,870

Lubricants 30,864

Total: $435,954

It is estimated that direct labor hours worked each month will range from 28,700 to 39,200 hours. During October, 28,700 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,590, Depreciation $6,210, Insurance $2,015, Rent $1,880, and Property taxes $1,490. Variable overhead costs: Indirect labor $14,756, Indirect materials, $7,042, Repairs $4,532, Utilities $4,725, and Lubricants $2,596.

(a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,500 direct labor hours over the relevant range for the year ending December 31, 2017. (List variable costs before fixed costs.)

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