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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

image text in transcribedExercise 22-3

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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 0.60

Utilities 0.40

Fixed overhead costs per month are Supervision $4,000,

Depreciation $1,600

, and Property Taxes $800.

The company believes it will normally operate in a range of 6,20011,600 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of 1,800 direct labor hours. (List variable costs before fixed costs.)

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 Indirect materials Utilities $1.20 0.60 0.40 Fixed overhead costs per month are Supervision $4,000 Depreciation $1 600 and Property Taxes S3 The company believes wil normally opera en a range of . 0 11,600 direct labor hours per month Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of 1,800 direct labor hours. (List variable costs before fixed costs)

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