Exercise 22-3 Myers 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 $1.20

Indirect materials 0.70

Utilities 0.20

Fixed overhead costs per month are Supervision $4,300, Depreciation $2,000, and Property Taxes $700. The company believes it will normally operate in a range of 8,10012,000 direct labor hours per month.

Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of 1,300 direct labor hours. (List variable costs before fixed costs.)

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