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Fagan Company uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: IndirectLabor $5.00

Fagan Company uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: IndirectLabor $5.00 IndirectMaterials 2.50 Maintenance .50 Utilities .30 Fixed Overhead costs per month are: Supervision $600 Insurance 200 PropertyTaxes 300 Depreciation 900 The company believes it will normally operate in a range of 2,000 to 4,000 machine hours per month. During the month of August 2008 the company incurs the following manufacturing overhead costs: IndirectLabor 14,000 IndirectMaterials 8,100 Maintenance 1,400 Utilities 950 Supervision 720 Insurance 200 PropertyTaxes 300 Depreciation 930 Prepare a flexible budget report, assuming that the company used 3,000 machine hours during August

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