Question
Myers company uses a flexible budget for manufacturing overhead based on direct labor hours Variable Manufacturing overhead costs per direct labor hours are as follows
Myers company uses a flexible budget for manufacturing overhead based on direct labor hours Variable Manufacturing overhead costs per direct labor hours are as follows
Indirect Labor $1.00
Indirect Materials $.70
Utilities $.20
fixed overhead costs per month are supervision $4000, Depreciation $1000, and Property taxes $500. The company believes it will normally operate in a range of 7000-10600 direct labor hours per month
Prepare a monthly manufacturing over head flexible budget for 2020 for the expectedrange of activity, using increments of 1200 direct labor hours
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