Exercise 11.19 Raney Company uses a flexible budget for manufacturing overhead that is based on direct labour hours. The variable manufacturing overhead costs per direct labour hour are as follows: $1.00 Indirect labour Indirect materials Utilities 0.80 0.20 Fixed overhead costs per month are as follows: supervision $4,500; depreciation $1,400; and property taxes $700. The company believes it will normally operate in a range of 7,800 to 12,900 direct labour hours per month. Prepare a monthly flexible manufacturing overhead budget for 2020 for the expected range of activity, using increments of 1,700 direct labour hours. (List variable costs before fixed costs.) RANEY COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2020