Copper Manufacturing has prepared the following monthly flexible manufacturing overhead budget for its Mixing Department:

COPPER MANUFACTURING

Monthly Flexible Manufacturing Overhead Budget

Mixing Department

Activity level

Direct labor hours 3,000 4,000

Variable costs

Indirect materials $ 3,000 $ 4,000

Indirect labor 15,000 20,000

Factory supplies 4,500 6,000

Total variable 22,500 30,000

Fixed costs

Depreciation 20,000 20,000

Supervision 12,000 12,000

Property taxes 15,000 15,000

Total fixed 47,000 47,000

Total costs $69,500 $77,000

Instructions

Prepare a flexible budget at the 5,000 direct labor hours of activity.