Doane company uses a flexible budget for manufacturing overhead based on amchine hours. variable manufacturing overhead costs per machine hour are as follow:

Indirect Labor- $5.00, Indirect Materials- $2.50, Maintenance- $ .50, Utilities- $ .30

Fixed overhead costs per month are:

Supervision- $600, Insurance- $ 200, Property Taxes- $300, Depreciation- $ 900

The company believes it will normally operate in a range of 2,000 to 4,000 machine hours per month.

Instructions:

Prepare a flexible manufacturing overhead budgest for the expected range of activity, using increments of $1,000 machine hours.