Ex. 3 Haren Company uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor $6.00 Indirect materials 2.50 Maintenance .80 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. During the month of August, 2011, the company incurs the following manufacturing overhead costs: Indirect labor $16,500 Indirect materials 8,100 Maintenance 2,500 Utilities 950 Supervision 720 Insurance 200 Property taxes 300 Depreciation 950 Instructions Prepare a flexible budget report, assuming that the company used 3,000 machine hours during August