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Company F uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor

Company F uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows:

Indirect labor $5.00
Indirect materials 2.75
Maintenance .50
Utilities .30
Fixed overhead costs per month are:
Supervision $1,200
Insurance 400
Property taxes 600
Depreciation 1,800
The company believes it will normally operate in a range of 4,000 to 8,000 machine hours per month. Instructions Prepare a flexible manufacturing overhead budget for 4,000 machine hours

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