E22-3 Thome 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 $1.00 Indirect materials 0.60 Utilities 0.40 Fixed overhead costs per month are supervision $4,000, depreciation $1,200, and prop- erty taxes $800. The company believes it will normally operate in a range of 7,00010,000 direct labor hours per month. Instructions Prepare a monthly manufacturing overhead flexible budget for 2014 for the expected range of activity, using increments of 1,000 direct labor hours