Exercise 184 Berne, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor $5.00 Indirect materials 2.50 Maintenance .80 Utilities 30 $800 Fixed overhead costs per month are: Supervision Insurance Property taxes Depreciation 200 300 900 The company believes it will normally operate in a range of 2,000 to 4,000 machine hours per month Prepare a flexible manufacturing overhead budget for the expected range of activity, using increments of 1,000 machine hours. (List variable costs before fixed cost BERNE, INC. Monthly Flexible Manufacturing Overhead Budget Activity level Machine hours 2,000 3.000 4,000