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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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