E22-3 Myers Company uses a flexible budget for manufacturing overhead based on Prepare flexible manufacturing direct labor hours. Variable manufacturing overhead costs per direct labor hour are as overhead budget. follows (LO 2), AP Indirect labor Indirect materials Utilities $1.00 0.70 0.40 XLS Fixed overhead costs per month are supervision $4,000, depreciation $1,200, and property taxes $800. The company believes it will normally operate in a range of 7,000-10,000 direct labor hours per month. Instructions Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of 1,000 direct labor hours