Concrete Finishing Equipment Manufacturing, Inc. developed its annual manufacturing overhead budget for its master budget for 2021 as follows:

Expected annual operating capacity 120,000 Direct Labor Hours Variable overhead costs Indirect labor $600,000 Indirect materials 120,000 Factory supplies 60,000 Total variable 780,000 Fixed overhead costs Depreciation 240,000 Supervision 120,000 Property taxes 96,000 Total fixed 456,000 Total costs $1,236,000

The relevant range for monthly activity is expected to be between 9,000 and 12,000 direct labor hours.

Instructions Prepare a flexible manufacturing overhead budget for the expected range of activity in increments of 1,000 hours.