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

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

Indirect labor $1.30

Indirect materials $0.80

Utilities $0.20

Fixed overhead costs per month are Supervision $3,900, Depreciation $2,000, and Property Taxes $800. The company believes it will normally operate in a range of 8,00011,600 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1,200 direct labor hours. (List variable costs before fixed costs.)

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CRANE COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2020

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