Exercise 22-4 Thome 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 0.90 0.30 Fixed overhead costs per month are supervision $4,320, depreciation $1,323, and property taxes $865. The company believes it will normally operate in a range of 5,700-9,000 direct labor hours per month. Assume that in July 2014, Thome Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor Indirect materials Utilities $4,320 1,323 865 $9,251 Supervision 6,920 Depreciation 1,885 Property taxes