Exercise 2 of 6:1 (15-20-minutes) The Johnson Co. developed its annual-manufacturing overhead-budget-for its master budget for 2020 as follows: Expected annual operating capacity Variable overhead costs Indirect labor Indirect materials Factory supplies Total variable Fixed-overhead costs Depreciation Supervision Property taxes Total fixed Total costs 120,000 Direct Labor Hours $600,000 120,000 ----60,000 -780,000 240,000 120,000 ---96,000 456,000 $1,236,000 The relevant range for monthly activity is expected to be between 8,000 and 12,000 direct labor hours. 9 Instructions Prepare a flexible budget for a monthly activity level of 8,000 and 9,000 direct labor hours.