Mighty Muffler Manufacturing, Inc. developed its annual manufacturing overhead budget for its master budget for 2021 as follows:

Expected annual operating capacity 120,000 Direct Labor HoursVariable overhead costsIndirect labor $600,000 Indirect materials 120,000 Factory supplies 60,000 Total variable 780,000 Fixed overhead costsDepreciation 240,000 Supervision 120,000 Property taxes 96,000 Total fixed 456,000 Total costs $1,236,000 The relevant range for monthly activity is expected to be between 8,000 and 12,000 direct labor hours.InstructionsPrepare a flexible budget for a monthly activity level of 8,000 and 9,000 direct labor hours.